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Germany's Chancellor Expresses Confidence in Euro's Durability

German Chancellor Angela Merkel, 25 Nov 2010

German Chancellor Angela Merkel, 25 Nov 2010

German Chancellor Angela Merkel has expressed confidence the 16-nation euro currency will survive the continent's debt crisis, and that no member of the eurozone risks having to restructure its debt.

Ms. Merkel spoke Thursday in Berlin, seeking to reassure financial markets as the euro was near a two-month low against the dollar.

Many analysts are voicing fears the euro's value could drop further if Spain and Portugal follow Greece and Ireland in seeking massive international bailouts.

Portugal on Friday dismissed a report in The Financial Times Deutschland that it is being pressured by European countries or the Central Bank to apply for a bailout.

The paper says officials believe a bailout would benefit Spain's economy, which is heavily exposed to Portugal.

Portugal and Spain are widely seen as the eurozone's weakest links, after Ireland agreed this week to accept a EU-IMF bailout plan similar to one already under way in Greece.

Some information for this report was provided by AFP and Reuters.