Recession jeopardises euro bailout

The EU Commission warned on Thursday that Europe could be gripped by a major recession in the coming year. This is not good news, writes the conservative daily Lidové noviny: "The banking and debt crisis is already spreading to the real economy. People are cautious about spending and companies are cautious about investing. EU Commissioner Olli Rehn admits that the Eurozone economy is crippled by a lack of confidence and a sense of insecurity. The stagnation, growing unemployment and increased public debt feared for the coming year can only be stopped if politicians can prevent the Eurozone from drifting apart. Until now, however, they have no prescription for how to do so. But the recession also means that the euro bailout will fail. The collapse of the Eurozone, only months ago considered a catastrophe that could constitute a major threat to peace, is increasingly being perceived as a serious alternative."

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