Translated "Avante!" article by Angelo Alves, Member of the PCP Political Committee and of Member the International Department

The news headline: “ Spain has requested for financial aid in order to recapitalize the banking”. The (mis)information centres hastily called it a “soft bail-out” or “ decaffeinated”( in the words of a Spanish paper), as it weren’t to be a similar “bail-out” as in Portugal, Ireland or Greece and therefore, there was not to be any “ austerity”. Mariano Rajoy and the Spanish economy minister refused to use the word “bail-out” insisting in the idea of a simple “ credit line” for the banking. Here, in Portugal, even the Left Block used the same formula and shooting ( in the feet), considered unacceptable that Spain had the right to a non-austerity loan when, in our country, the conditions had been otherwise.

The idea of a “simple” credit line to “resolve” the banking problems, moreover without the so-called “austerity” measures, is, obviously, tricky, a lie which dimension is proportional to the bail-out millionaire value -100 thousand million Euro. Thereupon, a lie as this decision is but the point of a huge iceberg - an economic and social crisis in quick deepening, within the 5th European major economy and a huge emptying of the Spanish speculative bubble, which most possibly will absorb many more resources beyond the 100 thousand million currently announced. Secondly, the money to be delivered to the Spanish banking, will be delivered by means of the Spanish state, which will become indebted, for the moment for 100 thousand million Euro, the Spanish public debt will probably hastily boost, up to at least, 90% of the GDP. As well known, such a decision will obviously have consequences and the workers and t peoples of Spain will be the victims. Besides, it is enough to read attentively the Eurogroup communiqué ,to easily come to the conclusion that more measures against their rights and life conditions will be imposed unto the Spanish people and they will be closely monitorized by both the IMF and the European Union. The truth is that this bail-out is, with other clothing, the very same as in Ireland, Portugal and Greece, in other words, using the state as a gigantic inhaler of public resources and the work incomes, directing them unto the banking and the great financial capital.. This is the truth that supports the PCP’s statement that what is necessary are not the aggression pacts renegotiations - as the Socialist Party and the Left Block hypocritically suggested - but otherwise, its rejection and the rupture from the European Union and the governments at the great capital service’s policies, here or in Spain.

But, if the gigantic great capital rescue operation within Spain poses new challenges to both those people and their struggle for the defence of their rights , Spain’s “bail-out” cannot abstain from having international impact, being the 12th greatest world economy. The fact that an economy of this dimension having fallen at the mercy of the great financial capital extortion processes, to the extent of having to surrender to the so-called “ external aid”, demonstrates the depth of the capitalism crisis. A crisis which is not limited to this or that country and spreads hastily. To prove it are the unemployment record levels within the Euro zone; the official announcement that France will begin recession this trimester; the announcement of a 1.7% loss in the German exports between April and March in the current year (and yet the most important) the disclosing of unemployment growth data in the USA, which currently reaches the official data of 8.2% ( which corresponds to a real rate of 14.8%) and the strong North-American economy moderation in function of the public expense contraction, for the sixth consecutive trimester, together with the almost domestic consumption stagnation and the domestic commercial deficit increase. As the PCP stated in 2008, the system´s measures in order to manage its own crisis, are but seeds of new and deeper crisis. Spain’s bail-out is one of them.