European Union (EU) commissioner of Economic and Monetary Affairs Olli Rehn has suggested that market reaction to political turmoil over the upcoming elections in Italy and the political scandal of illegal payments in Spain was evidence that the region has not yet closed the book on the economic crisis.

He also urged member nations to forge ahead with fiscal consolidation and reforms.

"There has been some turbulence due to the political situation in Italy and Spain. The markets immediately reacted with soaring interest rates on the countries' sovereign debt," he said in an interview with Austrian magazine Profil.

"That should remind us that we have not yet won the fight against the crisis. It is a very fragile situation," Rehn explained.

Nevertheless, Rehn noted that the "horror scenario" of a complete collapse of the euro has receded, while also suggesting that international currency coordination should be improved.

JM

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