Euro drops to lowest in 10 months against dollar

　　

　　

　　The euro has fallen to its lowes

　　Persistent worries over its 300bn- euro ($419bn; £259bn) debt has weighed on the European single currency.

　　The euro traded at $1.3436 in late morning, its lowest since May 2009.

　　The pound was lower for a sixth day, down 0.4% to $1.4936 following concerns over a possible hung parliament and the UK's high level of debt.

　　The euro was up 0.4% against the pound, to 90.53 pence.

　　The UK - and eurozone members such as Greece and Spain - have borrowed heavily, making financial markets more nervous about their ability to pay.

　　European Commission President Jose Manuel Barroso told Austrian newspaper Kurier that European Union (EU) governments need to be more disciplined over their public finances.

　　"Every euro spent to finance the debt cannot be used for schools, hospitals or innovation," Mr Barroso said.

　　

We have a contract which rules out the possibility of bailing out other nations

　　Angela Merkel

　　

　　Paul Mason: Sterling panic

　　Mr Barroso also told Austrian newspaper Kurier that European Union (EU) governments need to be more disciplined over their public finances.

　　Bail-out concerns

　　Greece is moving ahead with efforts to trim its vast budget deficit, as it struggles to sort out its finances.

　　But the proposed austerity measures - such as freezing public sector pay, raising taxes and changing the pension system - have provoked huge street protests.

　　Greece has pledged to reduce its deficit from 12.7% - more than four times eurozone rules - to 8.7% during 2010.

　　Greece's Prime Minister George Papandreou is due to visit German Chancellor Angela Merkel in Berlin on Friday, in what could be a key meeting to decide what, if any, Europe-wide assistance Greece receives.

　　She said again on Sunday that Greece had to sort out its own problems.

　　"We have a contract which rules out the possibility of bailing out other nations," said Ms Merkel.