Rescue plan unrealistic

The example of Portugal shows why rescuing highly indebted countries is so controversial, writes the conservative daily Lidové noviny: "The first problem is unfair treatment. The conditions for Lisbon are softer than for Greece or Ireland. Was Portugal the more skilful negotiator? Or is it already clear that the first two countries won't be able to fulfil their obligations? The preferential treatment doesn't help improve relations in Europe. The second problem is the unrealistic approach. Portugal promised spending cuts that parliament had just rejected. ... Indebted countries need a currency depreciation, lower interest rates and if necessary bankruptcy, meaning a write-off of non-collectable debts. Without at least one of these alleviation measures no one will ever emerge from the debt crisis."

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