Threat to euro is over, declares EC president

Speaking in Lisbon, Barroso said: "I think we can say that the existential threat against the euro has essentially been overcome. In 2013, the question won't be if the euro will, or will not, implode."

Barroso's comments were in stark contrast to those given by German chancellor Angela Merkel, who said in her New Year's address that the euro crisis, though improving, was "far from over".

Barroso's remarks also failed to lift markets, which had posted strong gains in recent days.

Major European indices all closed more than 0.5% lower on Monday, while the Dow Jones lost 50 points, or 0.38%, in overnight trading. Asian stocks were lower in Tuesday trading, with Japan's Nikkei 225 Stock Average sliding the most at 1.2%.

Stockmarkets surged last week after the US Congress passed a bill to avoid a "fiscal cliff" combination of government spending cuts and tax increases.

 

 

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