Euro holds following Jose Manuel Barroso's speech

Last night (February 21st), president of the European Commission Jose Manuel Barroso addressed the euro region for the first time since the 17-nation currency's finance ministers approved Greece's second bailout package.

The leader made a statement following his meeting with chairman of the High-Level Group on Administrative Burden Reduction Edmund Stoiber and announced that he is confident a large number of private bondholders will participate in the exchange necessary to help the Mediterranean nation avoid default.

He noted the package that was given the green light in the early hours of yesterday morning following 13 hours of talks in Brussels will open the way for Greece to make itself a new and more sustainable economy, which is better equipped for generating jobs and growth.

Mr Barroso added that the changes will spell the end of spiralling uncontrolled debt and the unfortunate social and economic implications that come with it.

"The second programme will intensify the many ambitious structural reforms underway, which are helping to build a more modern and citizen-friendly public administration, a fairer and more effective tax system and a more friendly business environment in which employment can flourish," he remarked.

Civil unrest and protesting currently ongoing in Athens was not overlooked by the president, with Mr Barroso acknowledging the Greek people are having to bear serious austerity measures after years of recession.

However, he noted that the action taken this week is "long overdue" and there is no alternative way to rescue Greece from its current financial state of affairs so that it is ready to generate growth and reduce joblessness.

On open this morning the euro was stable, slipping slightly versus the dollar with €1 buying $1.3 at (09:00 GMT).

The 17-nation currency was also marginally up against the pound, with €1 equalling £0.8 in trading shortly after open.