As Ireland becomes the second Eurozone country to receive financial assistance in this current debt crisis [an €85 billion package of loans
], speculation has been rife that the contagion will spread to Portugal and possibly even Spain and signal the beginning of the end for the Euro single currency. But these fears are wrong according to a commentary written by Chinese news agency Xinhau
Published under a Brussels dateline, the opinion piece entitled 'Euro will not fail'
said that while the Euro was facing its toughest challenge since its launch in 1999, the European Union had the financial means to deal with the drama.
"As a major achievement of European integration, the Euro is a landmark in the world's monetary history
," it says. "It has become the second-largest reserve currency as well as the second most traded currency in the world after the US dollar."
"Despite its shortcomings, which have been exposed by the debt crisis, the Euro has brought economic benefits and currency stability to its members. A break-up of the Eurozone would be politically unacceptable."
The commentary continued to remark that the EU’s (belatedly-installed) financial rescue mechanism, European Financial Stability Facility
(EFSF), had enough money to bail out Portugal if necessary and "if the crisis engulfs Spain, it would spell big trouble, but not the end of the Euro either
China, an increasingly-indisputable economic power, is believed to hold an undisclosed proportion of its $2.65 trillion in official reserves in Euros and has repeatedly expressed its support for the single currency. Last week it emerged China and Russia have decided to renouncing the US dollar
and instead use their own currencies for bilateral trade.