The For National Independence, Democracy DemocratDemocrat and Jobs Paper of the Campaign against Euro-federalism ISSN 0967-3806 Number 146 May-June 2015 50p Referendum wake-up call he Labour Party's belated U- are now unemployed in Greece and turn in support of a referen- Spain, with youth unemployment at T dum on EU membership - double that. Living standards have which could be held as early as May been cut as economies have contracted 2016 - will not win it support from under the lash of austerity and thou- working class voters as the party dog- sands have been forced to move abroad gedly supports EU membership. to look for work. Unemployment in Spain has been the report by Brian Denny equivalent of over seven million with- out jobs in Britain. Labour went into the election with a Three-hundred thousand Irish work- Page 5 suicidal position of opposing a referen- ing people have left their homes to look dum and saw its core vote collapse, for work overseas since the 2008 bank- mainly to UKIP, yet it still refuses to ing crisis, the equivalent of over four listen to working people and blindly million in Britain. supports every anti-democratic devel- Membership of the euro has acted as opment within the EU regardless of an economic vice on these economies, how damaging it is to workers and the fixing them at unsustainable currency economy. parities above all with Germany. Analysis by Labour MP John Healey Only when the euro is dismantled so Jobs and EU Referendum p4 has revealed that UKIP's share of the that those EU members in severe eco- vote was higher in Labour-held seats nomic difficulties can begin to manage than in Tory ones yet the party's obses- and rebuild their own economies again sion with empire loyalism has contin- will the sufferings of their peoples be ued unabated. reversed. Labour MP Kelvin Hopkins has just Despite the fact Syriza in Greece and launched a pamphlet The European Un- Podemos in Spain have grown quickly ion: A view from the left, as part of the to fill the political vacuums on the left, What ‘working people’ must do p3 campaign to expose the true neo-liberal these parties are still wedded to the and anti-democratic nature of the EU. idea of staying in the Euro zone and the Lat- "The reactionary Thatcherite revolu- EU itself. History tion inflicted on Britain has pushed the However these developments could Exclusive neoliberal agenda far beyond that of be viewed as stirrings towards a more Roots of Continental Europe, but the direction realistic analysis of the nature of the EU the EU and and objectives are the same. particularly as its internal crisis deep- domination "However, on the Continent, it is fear ens. by of the likely political reaction by mil- Yet many on the left still refuse to un- Germany lions of workers which has held back derstand the simple fact that the EU p8 the neoliberal thrust," he said. empire was built to increase the power He points out that one in four workers of the market and monopoly p2 Discussion on General Election p6-7 Democracy not hypocricy p12 Recent EU factors on the railways p9 capitalism and progressively dis- and marginalised. Literature mantle the socialist and social democ- It is time for democratic governments ratic gains established following the de- across the EU to reclaim power from EU feat of fascism. institutions and begin again to represent This refusal of left forces to face up to the real interests of their peoples and these economic and political realities move in a socialist direction. will make them increasingly irrelevant See editorial opposite and discussion on p6 Action on tax evasion harder in EU Listen to the EU Commission or the EU the form of dividends on its shares in the Parliament and you’ll hear from all sides daughter company concern will remain that they have been working hard to tackle light. However, the assumption being that tax evasion by transnational corporations. tax has already been paid by the subsidiary. Yet the real negotiations are taking place in This may be true, but this example shows Paris, at the Organisation for Economic Co- that even if this were the case it may have operation and Development, which brings been at far too low a level. together developed countries. One of the The accumulation of income is something papers published recently the OECD is looking at, but £2.50 each plus 50p by the OECD reveals the it’s difficult to draw up pre- postage fact that the rules of the cise rules. You can easily European Union’s internal bypass this problem by stat- OR 5 copies for £11 market are in reality an ing that if a great deal of in- post free obstacle to effective ac- come is coming directly to tion. the subsidiary, extra taxes Nothing more has been will be charged to the parent heard about this, but it company until all income is should and must be high accumulated and the Dutch on the EU Parliament’s list of priorities. rate paid on the total sum. But the EU Court Because this autumn decisions need to be of Justice has moved to prevent this from taken in Paris, the OECD is producing being imposed on subsidiaries within the document after document dealing with pos- EU, ruling that such a policy would jeopard- sible measures to counter tax evasion, one ise freedom of establishment, which is an of which concerns taxation on subsidiaries. aspect of the internal market. Only if it can Say, that a transnational corporation is es- be shown that a subsidiary has been set up tablished in the Netherlands with a subsidi- purely and simply for the purpose of avoid- ary in Ireland. In the Netherlands, company ing taxes, and that it has developed no eco- taxes amount to between 20 and 25 per cent, nomic activities of its own, is any action whereas the rate in Ireland is only 12½ per permitted. This is also a problem for the cent. It’s advantageous to the corporation in Conservative Government and yet another question to put down as much of its profit as reason to leave the EU and for Britain to possible to the Irish subsidiary, so that control the movement of capital. hardly any tax need be paid in the Nether- (Based on a report in the newsletter of the lands. Income received by the parent firm in People’s Movement of Ireland) Social Europe is a Con Essential reading Pamphlet printed and distributed by Democrat Intoduction by RMT General Secretary Bob Crow Press Contributors: Brian Denny, Alex Gordon, Linda Kaucher and Joh Boyd ([Editor} £1 each plus 50 postage OR £2.50 each post free. Five copies £3.75 post free Five or more copies are Available from Democrat Send cheques payable to £1.60 each post free Press for £11 post free Democrat Press Page 2 The Democrat Number 146 Editorial May-June 2015 What must be done by ‘working people’? embers of the millionaire’s ply been passed through cabinet have probably Parliament by secondary M placed bets on how many legislation and have not times they can say ‘working people’ been discussed by MPs. In in a speech. The phrase was even in other words rubber the Queen’s speech which was of stamped to become part of course written and approved by Her legislation in Britain. This Majesty’s Government. undermines all forms of democracy. The electorate is overwhelmingly made up of the working class. Un- The Government now fortunately many people were per- wants to attack trade un- suaded to vote for things they don’t ion rights including the right to penthouses, yauchts and one or two want and are not in their interest. strike – if you can’t strike then or more very posh cars. The public The list is long but can be used as you’re a slave! The European Court purse was handed over to the banks part of a wide ranging referendum of Justice has already passed legisla- to save them and we have not have campaign. tion to inhibit collective bargaining the money back! and other hard won trade union Meanwhile there are food banks and Austerity policies stem from Brus- rights. soup kitchens. Millions are unem- sels and in particular the 1992 Maas- ployed, especially cruel for the tricht Treaty which put in place the A huge distraction is the myth of young who see no prospects for a rules for the European Single Mar- what is called ‘Social Europe’ which decent life. To say the least, for ket drafted in 1986 in the Single gives nothing whatsoever for the many it is an unnecessary, shameful European Act. The Maastricht benefit of trade unionists. Social and disgusting situation. What is Treaty laid the basic rules for the Europe is nothing more than a con required includes the right to have a euro currency which were slavishly trick and has to be exposed as such. job, a place to live in without paying followed by the Government here, On top of all the above we have out most of your income, to have the although Britain didn’t actually join TTIP and ISDS being ‘negotiated’ in fundamental right to play their part the single currency. secrecy by the Brussels Commission in a family of their own and many and the US Government to the bene- other aspects of normal life. The criteria for the single currency fit.