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Barroso denies that eurozone is heading back into recession

The head of the Euro Commission has said the eurozone is not heading into another recession.

En route to New Zealand, Jose Manuel Barroso said both the EU and the euro were "strong and resilient".

And he added that "the latest forecast by the European Commission shows there will be modest growth."

However, European shares were set for sharp losses after Asian stocks slid and the euro hit a three-week low against the dollar.

This was on the back of fears of a renewed US recession and worries about the euro zone debt crisis.

There are also concerns that a new aid package for Greece could be on hold over fears the country will miss its budget deficit target this year.

Mr Barroso said it was too early to assess whether Greece would meet its commitments to cut the country's €340bn debt.

"We are in contact with the Greek government and just now they have made some important remarks saying that they will comply with their commitments.

Added Mr Barroso: ‘’This is certainly very important for Greece. It is also important for the EU," he said.