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World News

Euro zone not facing new debt crisis: EU's Juncker

FILE PHOTO: European Commission President Jean-Claude Juncker addresses a news conference at the EU-Western Balkans Summit in Sofia, Bulgaria, May 17, 2018. REUTERS/Stoyan Nenov/File Photo

BERLIN (Reuters) - There is no threat of a new sovereign debt crisis in the euro zone despite an anti-establishment coalition government taking power in Italy, European Commission President Jean-Claude Juncker said in remarks published on Saturday.

Asked by the RND network of German newspapers if the single currency bloc faced a new crisis, Juncker said: “No. The reactions of the financial markets are irrational. People should not draw political conclusions from every fluctuation in the stock market. Investors have been wrong on so many occasions before.”

A governing coalition comprising two parties hostile to the euro was installed in Italy on Friday, calming markets spooked by the possibility of a new election that might have become a referendum on quitting the single currency.

“I am certain the Italians have a keen sense of what is good for their country,” Juncker said. “They will sort it out.”

Reporting by Joseph Nasr

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