By James Petras
The European Union is controlled by an oligarchy, which dictates socio-economic and political decisions according to the interests of bankers and multi-national business. The central organs of power, the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF) have systematically imposed austerity programs that have degraded working conditions, welfare programs, and wages and salaries.
EU policies demanding the free immigration of non-unionized workers to compete with native workers have undermined wage and workplace protections, union membership and class solidarity. EU financial policies have enhanced the power of finance capital and eroded public ownership of strategic economic sectors.
The European Union has imposed fiscal policies set by non-elected oligarchs over and against the will and interests of the democratic electorate. As a result of EU dictates, Greece, Spain, Portugal and Ireland have suffered double-digit unemployment rates, as well as massive reductions of pensions, health and educational budgets. A huge transfer of wealth and concentration of decision-making has occurred in Europe.
Rule by EU fiat is the epitome of oligarchical rule.
Despite the EU’s reactionary structure and policies, it is supported by Conservatives, Liberals, Social Democrats, Greens and numerous Leftist academics, who back elite interests in exchange for marginal economic rewards.
Arguments for the EU and their Critics
The pro-EU power elite base their arguments on concrete socio-economic interests, thinly disguised by fraudulent ideological claims.
The ideological arguments backing the EU follow several lines of deception.
They claim that ‘countries’ benefit because of large-scale transfers of EU payments. They omit mentioning that the EU elite secures the privatization and denationalization of strategic industries, banks, mass media and other lucrative national assets. They further omit to mention that the EU elite gains control of domestic markets and low wage labor.
The EU argues that it provides ‘free movements’ of capital, technology and labor – omitting the fact that the flows and returns of capital exclusively benefit the powerful imperial centers to the detriment of less advanced countries and that technology is controlled and designed by the dominant elites which also monopolize the profits. Furthermore, the ‘free flow of labor’ prejudices skilled productive sectors in less developed countries while reducing salaries, wages and benefits among skilled workers in the imperial centers.
The EU : A Self-Elected Dictatorship of Empire Builders
‘Integration into the EU’ is not a union of democratic participants; the decision-making structure is tightly controlled by non-elected elites who pursue policies that maximize profits, by relocating enterprises in low tax, low wage, non- unionized regions.
European integration is an integral part of ‘globalization’, which is a euphemism for the unimpeded acquisition of wealth, assets and financial resources by the top 1%, shared, in part, with their supporters among the top 25%.
The EU promotes the concentration of capital through the merger and acquisition of multi-national firms which bankrupt local and national, medium and small scale industries.
Political and Academic Satraps of the EU Elites
The European Union’s oligarchy has organized a small army of highly paid politicians, functionaries, advisers, experts and researchers who support the European Union in a manner not unlike NGO workers in the developing world – answerable only to their ‘foreign’ paymasters.
Numerous Social Democrats draw stipends, travel expenses, lucrative fees and salaries as members of commissions and serve on impotent ‘legislative’ assemblies.
Academics advise, consent —and draw duplicate salaries from membership in the EU bureaucracy. Journalists and academics ‘front’ for the EU oligarchy by playing a leading propaganda role. For example, they have been busy slandering British pro-democracy, anti-EU voters by (1) calling for a new referendum and (2) questioning the right of the working class electorate to vote on issues like the recent EU referendum.
The leading financial press adopts a demagogic pose accusing the pro-democracy voters of being ‘racists’, ‘nativists’, or worse, for ‘opposing Eastern European immigration’.
In fact, the vast majority of workers do not oppose immigrants in general, but especially those who have taken once-unionized jobs at wages far below the going rates for established workers, on terms dictated by employers and with no ties or commitment to the community and society. For decades British workers accepted immigrant labor from Ireland because they joined unions at wage rates negotiated by union leaders, won by long workers struggle and voted with the majority of English workers. Under the EU, Britain was flooded with Eastern European workers who acted as ’scabs’ displacing skilled British workers who were told it was ‘progress’. This acted to destroy the prospects of their own children entering a stable, skilled labor market.
The financial press’s lurid descriptions of the British workers’ anti-EU ‘racism’ against Polish immigrant labor ignores the long history of Warsaw’s virulent hostility to immigrants–namely the refugees from the wars in the Middle East. The Polish government and population exhibit the most furious opposition to sheltering the thousands of Middle East and African war refugees, while claiming that they are not ‘Christians’ or might pose cultural or even terrorist threats against the ethnically pure Polish population.
Some of the British workers’ hostility toward Polish workers has a recognized historical basis. They have not forgotten that Polish strike breakers took the side of ‘Iron Lady’ Thatcher’s militarized assault against unionized UK miners during the great coal strikes and even offered to export coal to aid the Conservative government in breaking the strike. As such, EU-Polish immigrant workers are not likely to integrate into the militant British working class culture.
The Polish regime’s aggressive promotion of the economic sanctions against Russia has further undermined English jobs linked to that large and growing market.
The financial press ignores the fact that Polish immigrants ’scab’ on unionized British workers in the construction industry, undercutting long-established UK plumbers, electrical workers, carpenters and laborers – who have multiple generational ties to their communities and work. The EU elites use the importation of Polish workers to strengthen the reactionary labor policies of the employers
After the fall of Communism, Polish workers backed a succession of right-wing regimes in Warsaw, which privatized and denationalized industries and eroded their welfare system leading to their own impoverishment. Poles, instead of fighting against these neo-liberal regimes at home, headed for England and have been helping the British bosses ever since in their own anti-labor campaigns to reduce wages and decrease worker access to decent, affordable housing, public services, education and medical care.
The Eastern Europeans became the willing recruits of the EU reserve army of labor to raise profits for industrial and finance capital thus further concentrating wealth and power into the hands of the British oligarchs.
To label British workers’ antipathy to these EU policies over the free entry of cheap immigrant labor, as ‘racist’, is a blatant case of blaming workers for opposing naked capitalist profiteering. It is not hard to imagine how the Poles would react if skilled Syrian electricians were taking their jobs!
The pro-EU prostitute press claims that the pro-democracy voters are ‘anti-globalization’ and a threat to England’s living standards and financial stability.
In fact, labor votes in favor of trade but against the relocation of English industry overseas. Labor votes for for greater investment in the UK and greater regional diversity of productive, job-creating sectors, as opposed to the concentration of capital and wealth in the parasitic finance, insurance and real estate sectors concentrated in the City of London.
The EU-City of London-financial oligarchy have priced labor out of the housing market by promoting the massive construction of high-end luxury condos for ‘their kind of immigrant’, i.e. the millionaire and billionaire Chinese, Russian, Indian, Eastern European and US plutocrats who flock to London’s famous tax-evasion and money-laundering expertise.
The scribes of the EU-City oligarchy who claim that exit from the EU will lead to a cataclysmic breakdown are blatantly scaremongering. In fact, the stock and bond market, which declined for less than a week, rebounded sharply, as trade, production and demand were scarcely affected by the vote.
The hysteria-peddlers among the financial press resounded . . . in the minds and pockets of the City of London speculators. They rightly feared that their own lucrative financial operations could relocate overseas.
If and when the EU – City end their oligarchical control over the British economy, workers will gain an opportunity to debate and elect freely their own representatives and have a say in their own government. Leaving the EU is just the first step. The next move will be to change the rules for immigrant labor to accord with the standards of wages and conditions set by UK trade union organizations.
The following steps would include subordinating the banks to the needs of industry, investment in public housing for workers and the development of local technology for domestic producers.
The cleavage between productive labor and the EU parasites and their political hangers-on requires a new political leadership with a democratic foreign policy, which precludes overseas wars and imperial alliances.
The break with the EU logically and persuasively argues for a break with NATO and an opening toward free trade with Russia, China and the new dynamic global markets. The end of the EU can help weaken the strategic partnership between the European and City of London oligarchs. No doubt, the latter will not go without a class war of unprecedented ferocity, involving financial lockouts, manufactured fiscal crises, street mobs and parliamentary coups at the top of their agenda.
Only if the democratic electoral majority becomes a cohesive and combative class movement, in and out of Parliament, can they convert the referendum from a temporary electoral win to a stable basis for structural transformation.
Only a democratic majority can implement a fair and equitable immigration policy that strengthens labor and welfare policies and which would be based on the traditional values of British trade unionism and not on some criteria parroted by the ‘house servants’ for the lords of the EU-London ‘Downton Abbey’.
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