Economy

The victory of Socialist Party (PS) candidate Francois Hollande in the French presidential election on May 6 set off a wave of hope across Europe. On May 9, the Spanish government announced that it was nationalising the country’s fourth biggest bank, Bankia, to keep it from collapsing. What do these seemingly unrelated events have to do with each other? Enormous expectations are being loaded onto the shoulders of the former French PS national secretary. In recession-stricken Spain, Portugal and Greece, people hope he will put Europe’s economies on a path to growth and job-creation.

Compared with a southern Europe stricken by ever-rising unemployment and government attacks on social welfare and democratic rights, Luxembourg can feel as if it is on another, much more pleasant, planet. The richest country in Europe ― with Gross Domestic Product per capita at least 30% higher than that of the US, unemployment at 5.9% and the second-lowest public sector debt to GDP ratio ― this most important financial centre after London’s City would seem to be floating above the crisis.

In what marks a significant shift in the balance of European politics, in the final round presidential election on May 6, Socialist Party candidate Francois Hollande defeated right-wing incumbent Nicolas Sarkozy of the centre-right Union for a Popular Movement by almost 52% to 48%. Hollande is France's first president from the social democratic Socialist Party in France in 17 years. Sarkozy is the first president since 1981 not to win a second term.

Quebec college and university students are now in the 13th week of their militant province-wide strike. They have voted overwhelmingly to reject a government offer that met none of their key demands. After a 22-hour bargaining session involving ministers of the Charest government, university and college heads, and leaders of the major trade-union federations, the student leaders agreed on May 6 to put the offer to a vote of their memberships without recommending acceptance. If the offer was accepted:

The results of the May 6 elections in Greece sent a message that has been heard around the world: Working people want an end to the austerity agenda that has plunged Greece's economy into depression and slashed living standards everywhere.

Now that parties supporting cuts are losing elections across Europe, I wonder if the British Labour Party will consider a policy of opposing cuts. At the moment, they sort of oppose them, so if the government announces 200 libraries are closing next Wednesday morning, Labour says: "This is typical of this callous administration. They ought to wait until the afternoon."

Green Left columnist Carlos Sands rants, raves, and is literally moved to tears by the arguments of defenders of Israel in his second outing on Green Left TV. And as 19 Palestine solidarity activists face court in Melbourne, he has some choice words for Max Brenner and the Murdoch media.

Is there a surplus or is there not? Does delivering a $1.5 billion surplus in 2012-13 make Wayne Swan a “good economic manager”? Are you a winner and grinner or a loser soon to be driven to the boozer? Blah, blah, blah. Enough, enough already with the budget spins and counterspins. You want something real to worry about from the budget? Worry about your job if you are lucky enough to still have one, and worry about what will happen to you if you lose it.

“Right Greece, up against that wall over there. Here, put that blindfold on... what’s that? No you can’t have a last fucking cigarette, you are too broke. You flogged your last pack off to Goldman Sachs.” If the International Monetary Fund (IMF) was honest, this is how its press releases would read when describing the brutal austerity the “troika” of the IMF, European Union and European Central Bank demands from Greece in return for funds to stop the country going bankrupt.

An ANZ spokesperson told the Age the bank’s interest rate policy had created “public relations” challenges, but said: “We are in it for the long haul and part of that is an education process for our customers and us.”

Suncorp Insurance has left residents of Emerald and Roma in the lurch after it announced it would refuse all new insurance policies to householders in the region. No other insurers offer policies in the area. The small Queensland towns were hit hard by floods in recent years. Suncorp said on May 7 no new policies for home and contents insurance would be offered until flood mitigation works, including flood levees, are built around the two towns. Premiums for existing policy holders are due to rise dramatically.

Say no to the system that produces record profits for the 1% by impoverishing the 99% of us; say yes to a fair city and a better world.