Luxembourg Prime Minister Jean-Claude Juncker dismissed concerns about the future of the euro, calling it “the most solid currency in the world,” Luxemburger Wort reported, citing an interview.
“We are not facing a crisis of the euro but a debt crisis in individual euro nations,” Juncker, who also leads the group of euro-area finance ministers, said in the interview published today. “The euro’s existence and its essence are not at risk.”
Leaders from the 16-nation euro area, which will grow to 17 with the accession of Estonia on Jan. 1, earlier this month agreed to amend the bloc’s treaties to create a permanent crisis mechanism in 2013 intended to contain future debt shocks. Germany, for now, ruled out increasing the size of the current 750 billion-euro ($1 trillion) emergency fund or giving aid to Portugal or Spain, sparking investor concern about Europe’s formula to quell a potential contagion that could threaten the euro.
“We have to fight the debt crisis in the euro area,” the newspaper quoted Juncker as saying. “We can’t accumulate mountains of deficit and debt, but we have to bring about a consolidation of public finances. Only then can there be inflation-free growth and the creation of jobs,” he said.
“No one needs to be concerned about the euro,” Juncker told the newspaper.
© Copyright 2013 Bloomberg News. All rights reserved.