European Union “fully confident” euro will survive

The head of the European Union Commission has told the UN General Assembly he is “fully confident” that the 17 countries using the euro and all European institutions will do whatever is necessary to overcome the current financial crisis.

Commission president Jose Manuel Barroso says that despite all the difficulties, he was bringing the 193-member world body “a message of confidence” that the European Union is “on the right track”.

“We are doing a root-and-branch reform of our budgetary and economic policies,” he saiys

Barroso comments come as Fitch ratings agency downgrades Greece deeper into junk territory, warning of a “probable” Greek exit from the euro currency union if new national elections next month produce an anti-bailout government.

Fitch says it has cut Greece’s rating by one notch, from B- to CCC, the lowest possible grade for a country that is not in default.