11-03-08, 10:14 am

Editor's note: The following is a statement from the German Communist Party's executive committee.

The financial crisis has global effects. It has driven the world economy into a recession resulting in extreme stock price losses and increasing effects on the material economy in large extent, as currently experienced in the German automobile industry. The consequences for the working class, the employed and the unemployed persons, for pensioners and those dependent on whatever form of public alimony, for the poor all over the world, as well as for the middle class in the developed capitalistic countries are not yet foreseeable in their whole extent.

Reality has long since disproved that this crisis is exclusively one of the US financial capital; the reference to stable conditions in Europe do also not hold true. All gossip about economic growth and about 'a job miracle' is passé in Germany, too. Minister of Finance Steinbruck explained in the budgetary debate in early September that the financial crisis was US-made. At the end of September he proclaimed that 'the world will never be the same as before the crisis.' On October 10th Chancellor Merkel informed the German parliament that' (never) before have we had such a serious situation.' Newspaper headlines proclaiming that 'Capitalism in crisis' or 'Capitalist system in question' were to be read. If taxpayers weren't now being mandatorily obliged to preserve the banks and insurance companies not only of the five large banks of the USA, but of various banks in Iceland, Great Britain, France, Italy, Spain, Germany and other countries would have gone bankrupt. The governments of the economically strongest capitalistic states have passed programs to save the banks. Some of the financial institutions most heavily struck by the crisis are to be – temporarily – trusteed by the government. The goal is 'the socialization' of their losses. In another economic situation the then 'reconstructed institutions' will be returned to the control of finance Capital.

The Government of the Federal Republic of Germany is planning to grant more than 500 billion Euros for subsidies and/or securities.

The German Communist Party rejects this wasting of public funds. We demand the immediate installation of a commission of representatives of trade unions as well as other institutions not connected with the bank capital and representatives of the democratic public. Their task would be to inform the public about the extent of the crisis and to submit solution proposals which would to be decided upon in popular vote. As an immediate step we suggest the transferral of all major banks into public property; the control should not remain any longer in the hands of bankrupters and speculators.

We still remember very well:

• when 6 billion Euros for Kindergartens and day nurseries, when 7 billion Euros for the necessary of up to 420 Euros per month of unemployment benefits to increase were claimed for it was unanimously called as being too expensive by the neoliberal parties (the Conservatives, the Liberals, the Social Democrats and the Green Party). But suddenly there is enough money left billions of Euros for the support of banks, insurance corporations and probably for a several large corporations, • when a legal minimum wage level was discussed or an occupation program was demanded, or when an increase of pensions were asked for, these costs were enumerated as being prohibitive. Now it's about dozens of billion Euros. The representatives of the governing coalition decided, not even was the parliament consulted and the people were not asked at all. The influence and power of the financial Capital on the dominant parties never has been seen as clearly as now. • when the debate was about was about social, educational or humanitarian demands, increases in spending were rejected with the argument the main goal should be to reduce the national debt.

Now we have to learn: Capitalism must be saved no matter the price.

This crisis didn't come out of a blue sky. The causes for this crisis lay not in the failure and errors of bankers, executive committees or in the failure of the state supervision of the banks. The former simply used the possibilities the system gave them when speculation expanded more and more.

Capitalism has produced the devastating effects of this crisis. The Conclusions drawn in the German Communist Party Program are confirmed in a dramatic way. 'Speculation was always a component of capitalistic economy. But in the new phase of monopoly capitalism it became a determining element and penetrates all ranges of economy and politics. This leads to the fact that financial speculation for the large companies becomes a central instrument of capitalistic accumulation. With large fusions in the bank and insurance branch, with enormous financial resources collected in investment, pensions and other funds the financial establishment has reached a higher stage of its power. The capital circles around the world in search for the highest profit rate. Its interest hunger can only be satisfied by inconsiderate increase of quotations and plundering of the budgets of states and municipalities. And those are driven by increasing debts into deeper dependence on the financial establishment. The speculation achieved new extents, no longer only stocks and enterprises, but also the currencies of the countries became objects of speculation. The international financial markets dictate the national economic policy.'

These financial markets – and with them the economy have now slid into a deep crisis for which the majority of the people all over the world, first and foremost the poorest, are going to have to pay the price. On October 9th the newspaper 'Frankfurter Allgemeine Zeitung,' voice of the German bourgeoisie, felt called up n to quote the 'Communist Manifesto' on its front page: 'Modern bourgeois society, with its relations of production, of exchange and of property, a society that has conjured up such gigantic means of production and of exchange, is like the sorcerer who is no longer able to control the powers of the nether world whom he has called up by his spells.'

The fact that the USA as well as England, Belgium and other states have put the banks under state control demonstrates the crash of the so-called free market economy, of capitalism. Crises are part of the capitalist system, but this crisis runs obviously different, because several crisis factors are affecting each other: Over-production, the ecological and the hunger crises, and the conceivable possibility of the defeat of imperialism in Afghanistan and Iraq.

All that can lead to consequences that could vitally endanger humans and nature. Catastrophes due to warfare, to ecological, to social disasters as well as the worsening of conditions due to migration become more probable. In addition the tendencies to reactionary, dictatorial forms of capital ruling will continue to grow. The unconstitutional proposition made by the German Government to allow the Armed Forces to take action within the country's interior is yet another indication.

We, members of the Communist Party of Germany, see ourselves as a part of the extra-parliamentarian movement which must now voice and and implement the opinions of the majority of the working people against the neo-liberal power. It is now we have to strengthen the protest and resistance against the further destruction of social welfare systems, against the dismantling of education, against further privatization of public utilities as well as against the change of tax systems in favor of the capital.

Everywhere we work, study and live we have to organize resistance. Our demands and actions are in the very own interest of workers the unemployed, students and pensioners.

Social alliances must be the results of the conflicts experiences in factories and offices, in districts and cities. These alliances need now to join forces and draft common demands.

The German Communist Party has put forth following demands:

• not to 'socialize ' the losses, but to transfer banks and companies into public property and put them under democratic control! • implement the Constitution (Article 14 - property obligated - and Article 15 - socialization) • to stop further privatization: we demand the protection of the savings banks, municipal banks and the public community structures • tax revisions against the interest of Finance Capital • an immediate 1.5% taxation of the 800,000 (multi)millionaires. (This alone could bring in revenue amounting to approximately 30 billion Euros for example for an occupation/employment program.) • In all financial and insurance organizations there most be representatives elected from democratic bodies such as trade unions, democratic associations, federations and social organizations with the task of supervision and control of business practices.

In addition we call for one immediate political measure: the prohibition of speculations and the abolition of hedge funds. Criminal offenses are to be uncovered and pursued; criminal offenders from the ranks of management are to be punished.

We demand a change in politics not only as the danger of reactionary developments grows. This will require public support by a large majority of the population for more social, more democratic, more ecologically and anti-war politics. This process will have to focus on the discussion about social alternatives and future perspectives. Solidarity in action and in debate are the two sides of one coin. We need an open debate over the future in which we want to live.

In view of the recent crisis of capitalism we communists renew our point of view: 'Under the precondition of the public property ownership and comprehensive social planning of production it will be feasible to- in the course of a longer historical process- develop an order of human cohabitation in which the free development of the individual the condition for the free development of all mankind.' (K.Marx/F.Engels: 'Communist Manifesto')