The European Commission president said on Friday that China still has confidence in the euro, despite a plunge in the European currency as negotiators work toward a financial bailout for Greece.

“I don’t think China is lacking confidence in the European Union or the euro,” Jose Manuel Barroso, head of the 27-nation European Union’s governing body, told reporters after meeting with China’s premier and other officials.

Beijing has refrained from commenting publicly on the euro but it keeps an estimated 20 per cent of its $2.5 trillion in foreign reserves in assets denominated in euros.

Mr Barroso said Premier Wen Jiabao and other officials did not raise any specific concerns about the currency. But he said, “They are following the issue.”

European negotiators are close to agreement on a bailout for Greece and he expects results “very soon,” he said. “There is no doubt that Greece’s needs will be met in time.”

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