Paul Murphy (Dublin South West, Socialist Party) | Oireachtas source

The recent TASC report, Cherishing All Equally: Economic Inequality in Ireland, proves the point about the extreme rise of inequality in Ireland. The 1% has an average income of €373,000 a year compared with the bottom 90% who have an average income of €27,400. Ireland has the highest level of gross income inequality in the European Union. This is rooted in, in particular, the fact that one in five workers are low paid, the highest number in the EU, and the fact that almost one in five households are entirely jobless. This gives a picture of the very strong recovery the Government talks about in its amendment. This is the recovery it has in mind for working class people. It is a recovery which has deepened inequality. It is a recovery for the rich and for the corporations and it is based on the increased exploitation of large sections of working class people. It is based on low wage, precarious employment. This is the reality and it is part of a global picture. It is the reason why Piketty's book is so popular and has become such a talking point.

Inequality is undoubtedly growing right across the world. It is in the nature of capitalism, as we currently have it, to increase inequality in a gross way. Hence the very notion of the 1% and the 99%. This has a real cost. The Government's response is that inequality is some abstract notion of interest to academics. The share of the 90% of the national income has fallen from 72.7% in 1977 to 63% in 2012. This has a real impact. It is worth €11 billion. If that income share was reversed at the moment, every single household in that 90% would have €7,400 more in income per year. This is the cost of inequality and it has a real impact in terms of poverty and the material deprivation experienced by 1.4 million people in this State.

I wish to raise a question. We have a series of measures set out in this motion, with which I agree.

What happens when a government on the left that is committed to those policies comes to power? We now have an example, in Greece. What happened was an attempted and largely effective annulment of the Greek election results. The wishes of the Greek people were entirely ignored by the European establishment, with the Irish Government lining absolutely behind them to stab the Greek people in the back, while at the same time stabbing ordinary people in this country in the back. The European Commission is unelected. Mr. Juncker declared that there are no democratic choices possible outside the framework of the European treaties. The unelected ECB, which has been the key player in two silent coups against governments, basically said to the Greeks that it would bring down their banking system if they did not implement the kinds of austerity policies that were desired. The question has to be asked: how it is possible for a leftist government to implement progressive, pro-equality policies under the framework of the EU rules and the rules of monetary union? The answer is that it is not. The EMU is a straitjacket for neoliberalism, as is the European Union. Therefore, it is necessary for the left to prepare, in advance of being in power, for the kind of battle that is necessary if it is to take on the interests of capital in Europe - to say that the euro is not a fetish, and to say that if the choice is between leaving the eurozone and destroying our society, it will refuse to destroy our society. It is a question of putting forward bold measures, such as capital controls and public ownership and control of banks so that they can be used as an instrument for developing the economy, as opposed to using society and the economy simply to benefit the banks, and for investment in important sections of the economy to create jobs.

Capitalism in Europe has really bared its teeth over recent days. Those concerned have no interest in democracy whatsoever. We will need governments on the left in this country and other countries across Europe that are willing to stand up to the capitalist interests and take the measures that are necessary.

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