Portfolio manager Axel Merk tells Bloomberg TV that the Euro may strengthen on the backdrop of austerity measures

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'In Europe, [governments] know they can't outgrow their problems; they have to tackle their problems. The EU Commissioner on Monetary Affairs Olli Rehn has said, we need to continuously have stress tests. And that's absolutely the right thing to do: one needs to continuously apply pressures to [the banks] and also to the governments. We see that happening - a very healthy process. As a result, we happen to like the euro; ... [Europe] is engaging in real structural reform.' ..."