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maandag 27 mei 2024

WORLD WORLDWIDE EUROPE FRANCE - news journal EUROPE - (en) France, OCL - Lamouette Enragee: The war economy according to Macron, or producing to the sound of cannons... (ca, de, fr, it, pt, tr)[machine translation]

 

The May issue of Courant Alternatif magazine was produced during the
previous weeks in Boulogne-sur-mer and Lille. It was modeled in Moulins.
To find the summary, discover the magazine, read the first articles
online or, better yet, to subscribe, go to the site:
https://oclibertaire.lautre.net ---- We offer reading this text taken
from the issue in question.
The war economy according to Macron,
or produce to the sound of cannons...
War was an indispensable auxiliary of capitalist development, before
becoming one of its diseases (1). In the prime of life, it was still a
question of exporting European antagonisms to other continents. In quick
succession, two world wars made it reappear in the heart of the old
historic center and complete the cycle. Are we on the verge of closing a
new one?

Several recent events demonstrate strong tensions between imperialist
powers. However, the Cold War is definitely behind us and it would be
risky to construct a scenario for the present time as alliances are
formed and unraveled to the rhythm of a crisis punctuated by twists and
turns as it worsens. One thing is certain, the holy alliance of
industrialists, politicians and the military remains more relevant than
ever. A fortiori when simultaneously or in turn they sense an
opportunity to seize. And for now, that's what it seems to be about.

The war economy according to Macron

Who still remembers Montebourg and its "Productive Recovery"? The
"Start-up Nation" also seems to have fallen into oblivion. Nothing
surprising in this since Macron's performative speech at Eurosatory
which, de facto, would have brought France into a "war economy" (2).
Martial, if ever there was one, the formula calls out. However, what
reality and what issues does it really cover?

The commonly accepted definition of "war economy" is that of a state
which reorients the production of its industries through planning with
the aim of achieving a military victory. The corollary is the increase
in fiscal pressure and monetary creation, inflation and public debt. In
other words, the perfect combination of everything that the government
team in place claims to want to fight step by step.

In truth, the challenge facing all political majorities remains the
crisis of expanded reproduction that has undermined the globalized
capitalist economy for several decades. This is characterized by excess
manufacturing production capacity, the fall in industrial employment,
the saturation of markets and the decline in investment rates in fixed
capital (3).

Chained to the logic of profit, politicians and magnates have until now
undertaken nothing that has not further exacerbated the antagonisms
between rival zones of influence: development of finance and repeated
explosion of bubbles; massive transfer of labor to the tertiary sector,
a weak engine of growth and generator of low-skilled and poorly paid
jobs; rising international tensions and protectionist renewal...

The quest for the industrial Grail

In view of the situation, reindustrialization has become the mantra of
certain decision-makers, particularly in France. This is how the
fraction of employers which was marking time within Medef, that of the
UIMM (4) whose president is none other than the CEO of Dassault,
welcomes the current geopolitical climate as a godsend. First of all,
she sees it as an opportunity to restore her image and regain control
after years of her image becoming outdated and the revelation of
delicate matters, true open secrets (5)...

Above all, it can appear as the prime contractor for the government
project to modernize not only military activity, but the industrial
sector as a whole. Thus, the trick is played, and the military industry
finds itself the instigator of a fantasized reindustrialization. To
establish his position, the boss of the UIMM weighs the second place
acquired by France ahead of Putin's Russia in the sale of arms on the
world market. It is true that since the war in Ukraine the stock market
shares of military equipment manufacturers, all categories combined,
have increased by more than 35%.

If the industry only represents 10% of France's GDP, the armaments
industry has just achieved 30 billion in turnover, including 10 billion
in exports. Compared to the 2096 billion accumulated by the German
manufacturing industry in 2020, this seems quite paltry (6). But it is
also the balance or rather the imbalance within the "Franco-German
couple" and the EU that is in question. France's stated desire to build
a Europe of Defense can only be understood in terms of benefits which
still elude it in a market from which it draws one of its main sources
of income. For example, the EU spends 60 billion to buy planes from
Lockheed Martin, the Poles equip themselves with the Koreans and the
Germans continue to take their instructions from Washington... A return
on investment all the more awaited by the UIMM that it pays more than
400,000 euros each year in order to obtain the sympathetic ear of the
European Commission.

Rolling out the red carpet for employers

On the eve of the First World War, R.Luxemburg affirmed that for the
capitalist class, militarism had become essential from a triple point of
view: "1° to defend national interests, (...) 2° to constitute a
privileged area of investment both for financial capital than for
industrial capital(...) 3° ensure its class domination over the working
people..."

When reading the issue of the National Strategic Review of 2022(7), we
will note that none of these three points is missing from the call of a
program that ideally embodies the new General Delegate for Armaments,
Emmanuel Chiva , at the same time business man, senior civil servant and
reserve officer.

On the theme of defense of national interests, we observe nothing really
new. Surveillance and the development of cybersecurity are on the
agenda, but it is above all the partnerships between governments
associated with arms sales that interest the State. These contracts
allow it to maintain strategic positions internationally as well as its
status as a "balancing power".

The second point of the roadmap arouses more marked interest. "Putting
the capacity to produce back at the heart of concerns", by producing
more, faster and above all less expensively, involves simplifying and
optimizing the industrial tool. The objective pursued is thus to "reduce
the level of requirements by 20% in order to simplify the work". By
requiring less justification, the State assumes responsibility for
sharing the risks induced with employers, intending to cover them in the
event of a problem.

We can already see what this program contains in terms of attacks on the
safety and working conditions of people assigned to production tasks in
the sectors concerned. And further, to the entire world of work because
Macron and his team insist on the need to involve in the project the
thousands of SMEs and ETIs who already work between the civil and the
military. Resorting to "dual companies" is an old practice of which the
nuclear industry remains a textbook case in France. In this case,
innovations and spin-offs are expected mainly on high-tech and high
value-added products. Two birds with one stone...

Finally, after that of the workers, will come the turn of young people
and primarily those from working-class backgrounds. They will be taken
back in hand through work, discipline and ideology. A DGA official told
the press that the defense industry is essential to put "people behind
the machines.» To achieve this he intends to "communicate with young
people" in order to recruit a certain number of them for welder or
mechanical fitter positions in high demand by manufacturers. Soon, the
Ministry of Defense will take steps in this direction with that of
National Education.

In turn, the school will be called upon to promote the SNU and work to
"reinforce and root as early as possible the spirit of defense in young
people and the attractiveness of the profession of arms, in order to
build a base of resilience collective".

Where to find the money?

As the saying goes, paper never refuses ink, and from the pen to the
factory, there is still room... First of all, the State must ensure the
financing of this scenario. The 413 billion announced will not be enough
and the banks will think twice before committing.

Concerned about their image, they could lose access to financing at
reduced rates if they suddenly began to invest heavily in the production
and trade of arms. For the moment still, the taxonomy (8) practiced by
the European Investment Bank dissuades them, unless it too changes its
tune under pressure from member states. We recently learned that the
Ministry of the Armed Forces is working on setting up a network of
banking referents in France but also in Europe...

There is of course the European financial market, in particular Euronext
where the share price of arms manufacturers has doubled under the
combined effect of the war in Ukraine and the threats launched by Trump.
In the event of his re-election, he announces that he will withdraw his
financial support from Europe if certain member states do not subsidize
NATO more...

There obviously remains the nest egg of French savers in the amount of
2,500 billion euros which the State is eyeing with covetousness.

Finally and above all, the public deficit skillfully maintained by the
unlimited drawing rights granted to employers will cause new and juicy
budget cuts to the detriment of health, culture and social protection.
There is no doubt that the generous sums thus generated will find buyers
among the prince's favorites...

And now

The possibility of war should never be viewed lightly. For capitalism,
this has a precise function: destroy excess capital and restart a new
cycle of accumulation. However, we will be careful not to categorically
assert, as some do, that we are on the eve of a new global explosion.

We must necessarily redouble our vigilance and oppose any form of
regimentation. For this, we must combat all patriotic, nationalist,
militarist and imperialist speeches wherever they come from and without
exception. The refusal of the SNU and state propaganda aimed at the
youngest, the fight against budget cuts in vital sectors of society and
above all the daily class fight against employers and capital are the
only weapons available to us, it is up to us to use them purposefully.

Boulogne-sur-mer, 04/14/2024

Notes

1. It never hurts to revisit your classics. The main texts of R.
Luxemburg on militarism and imperialism still provide an enlightening
point of view on the question today.

2. Eurosatory is an international exhibition which brings together the
main arms manufacturers every two years in Paris.

3. "Karl Marx in Beijing", the work by Mylène Gaulard, published in
2014, offers an overview whose conclusions on "The dangers of
overaccumulation in China" - and beyond - have since been confirmed.

4. The Union of Metallurgical Industries and Trades (UIMM). We no longer
present the French metallurgical employers, there is literature provided
on their account...

5. The slush fund affair of 2007 is just one incident among the long
list of those that mark its history.

6. GDP of Germany: 4500 billion in 2020. GDP of France: 2304 billion in
2020.

7. Document to be found on the website of the General Secretariat of
Defense and National Security.

8. Taxonomy: originally a branch of natural sciences diverted in order
to green certain banking and/or productive practices.

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