Make or break time for eurozone: EU economic chief Rehn

(HELSINKI) - The eurozone crisis has placed the monetary union at a critical crossroads that could make or break the single currency, EU Economic and Monetary Affairs Commissioner Olli Rehn warned Thursday.

"Ahead lies either the slow disintegration of the euro area or a significant strengthening of the monetary union," Rehn told journalists in Helsinki.

Rehn declined comment on the disappointing outcome of a German bond auction Wednesday, when just 3.9 billion of 6.0 billion euros in government bonds were taken up by investors.

"It is not our practice to comment on day-to-day developments in the markets," Rehn said, but added that "the situation is very serious" as the contagion from the Greek debt crisis had now touched the heart of the EU.

"The contagion effect that started in Greece and spread to different EU countries has recently affected countries close to the heart of the EU area and has now touched even the hardest core of the EU," he said.

Rehn said what was needed were "courageous and determined decisions without delay in next week's EU meetings" of the eurozone group in Brussels on November 29.

The Finn said that beating the current crisis required proactive stabilisation and strengthening of the union, as well as the correction of imbalances.

"Without this, the (proposed) eurobond would become junk bonds that no one would want, neither European nor other states," he declared.