EU 'faces its greatest challenge' - Jose Manuel Barroso

Wednesday, September 28, 2011


The head of the European Commission has told Euro MPs that Greece will stay in the eurozone, but warned that the EU was facing its "greatest challenge".

Appealing for patience over the Greek crisis in his annual State of the Union address in Strasbourg, he said: "This is not a sprint but a marathon."

Proposing a financial transactions tax and eurobonds, he called for greater economic integration.

International lenders are due in Athens to assess its progress on cutting debt.

The so-called troika, made up of the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF), hold the key to releasing further bailout money the country badly needs.

Reports have emerged of a split among eurozone members about further support for Greece.

Citing "senior European officials", the Financial Times said a number of the bloc's 17 members wanted private investors to take a bigger hit in the proposed restructuring of Greece's debts.

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