2010.09.2400:31:00UTC+00E.U.'s Barroso Says Europe Will Come Through Crisis

European Commission President Jose Manuel Barroso on Thursday reportedly said the debt problems of some eurozone states are "exaggerated" and expressed confidence that Europe will come through the crisis with a strict continent-wide austerity regime.

"I think the euro is a strong currency, and here to stay," Barroso was quoted as saying at an event in New York. "The priorities of policymaking now are financial reform, continued fiscal consolidation, and structural reforms."

He said the strict austerity programs adopted by countries such as Greece, Portugal, the Republic of Ireland, Spain and Italy will help them to get their deficit and debt problems under control.

Barroso also said the European banking system is in good shape amid criticism from some quarters over the recent pan-European banking "stress" tests, which were accused of not being strict enough.

"The European banking sector is healthy - the idea that the banking sector is not healthy is completely wrong," he said.

The eurozone economy expanded an impressive 1% between April and June. The strong growth prompted the European Commission to raise its 2010 growth estimate for the euro area to 1.7% from 0.9%.

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