(updates with more comments from Rehn in last three paragraphs)
ZAGREB, Croatia -(Dow Jones)- European Commissioner for Economic and Monetary Affairs Olli Rehn said Saturday that it will do whatever is needed to support the euro.
Speaking at the annual meeting of the European Bank for Reconstruction and Development, Rehn said it is "important markets read our package--we are serious in defense of the euro."
European Union leaders last weekend put together a giant euro-zone financial backstop partly designed to ease investor concerns about the public finances of several member states after a spike in credit-markets tensions and several days of tumbling stock markets.
The $1 trillion package first helped quell concerns about a contagion spreading from the euro zone crisis to the entire global financial system. But as the week progressed, investors again became more fretful about its viability and worries that it will stymie economic growth led the euro to an 18-month low Friday.
"Fiscal sustainability in and around Greece has triggered turbulence...this uncertainty is the main risk to the ongoing recovery in the real economy in Europe," he said. "It was important to put out the bush fire in Greece before it turned into forest fire in Europe."
Rehn called for coordinated exit and growth strategies to be the top agenda at next month's G-20 summit in Toronto.
Rehn said the euro zone needs to execute a strategy with differentiation, reflecting the varying economic and fiscal situations across its member states.
Copyright 2009 Dow Jones Newswires
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