Euro will survive, says ECB

The euro will survive the current crisis in Europe, but spreading of Ireland's problems must be prevented, European Central bank…

The euro will survive the current crisis in Europe, but spreading of Ireland's problems must be prevented, European Central bank Governing Council member Erkki Liikanen said today.

"Euro will survive and euro's position is not at all in question," Mr Liikanen told Finnish broadcaster YLE.

He added that he found it impossible that the euro zone would split into two different groups.

"It is important that this Ireland's crisis will not restart a negative cycle in Europe that would weaken or halt this fragile growth," Mr Liikanen said. "Now we need a tight programme by the European Commission and IMF and strong commitment from Ireland."

Speaking seperately, the Luxembourg finance minister Luc Frieden said no alternative exists to the euro and those who seek to speculate against it will lose,

"Investors must understand there is no alternative to the euro, who speculates and bets (against it) is making a mistake," Mr Frieden said in an interview in Italy's Il Sole 24 Ore.

Mr Frieden said that thanks to the support from the European Union and the International Monetary Fund "the market knows...Ireland will be able to solve its financial system difficulties and reorder its public finances".

The Government's request for help came at the right time and will help reestablish confidence in the whole of Europe's financial system, he said.

Reuters