Policymakers try to calm markets amid euro sell-off
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IRJ Feb 5 - European policymakers jumbled on Friday to reassure markets on the stability of their 16-nation currency block as investors shed euro assets for a second day on fears about debt-laden member states Greece and Portugal.
European Central Bank Governing Council member Ewald Nowotny tried to play down a sharp fall in the euro, which hit its lowest level against the dollar since May 2009, and called talk of a euro zone breakup "absurd."
Greek Prime Minister George Papandreou, on a visit to India, promised to "credibly apply" an austerity program designed to bring his country's yawning debt and deficit levels under control.
Markets also focused on Portugal, where parliament was due to vote on a regional financing bill that is seen as a crucial test of the government's ability to curb spending.
Alongside Greece and Spain, Portugal is one of a handful of euro bloc countries that face intense pressure to get their public finances in order and calm markets worried about the risks of a sovereign default.
Analysts are no longer discounting the possibility that a smaller member of the bloc such as Greece could be pushed out, though most believe monetary union will survive.
European Central Bank Governing Council member Ewald Nowotny tried to play down a sharp fall in the euro, which hit its lowest level against the dollar since May 2009, and called talk of a euro zone breakup "absurd."
Greek Prime Minister George Papandreou, on a visit to India, promised to "credibly apply" an austerity program designed to bring his country's yawning debt and deficit levels under control.
Markets also focused on Portugal, where parliament was due to vote on a regional financing bill that is seen as a crucial test of the government's ability to curb spending.
Alongside Greece and Spain, Portugal is one of a handful of euro bloc countries that face intense pressure to get their public finances in order and calm markets worried about the risks of a sovereign default.
Analysts are no longer discounting the possibility that a smaller member of the bloc such as Greece could be pushed out, though most believe monetary union will survive.
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