Merkel says euro has stabilised

German Chancellor Angela Merkel said on Wednesday the euro has stabilised and should be on a stronger foundation than before the Greek crisis thanks to debt-reduction measures being implemented in the euro-zone.

"The euro has been stabilised," Merkel said in an interview with N24 television, according to a text released by the network.

"It's an important signal that banks are carrying out stress tests and that we'll have more transparency in the system. And it's pleasing that, in contrast to the spring, nearly all countries in Europe are now saying we have to reduce deficits and introduce structural reforms."

Merkel added: "Once the measures that we've agreed have been completely implemented it'll mean the euro will be on a stronger foundation that before the crisis. We'll have to await the stress test results. But we're ready, with the help of the euro rescue measures, to stabilise the euro at any time."