BRUSSELS (MNI) - Greece's problems would be worse without the euro, European Commission President Jose Barroso said on Tuesday, adding that the troubled southern European country, together with all the other 26 European Union countries must respect the bloc's budget rules.

Answering questions before members of European Parliament in Strasbourg, Barroso said that the euro zone was going through a difficult period, but that things would be worse without the single currency.

"The euro will continue to constitute a major tool for our development," Barroso said.

"Those who think it can be put into question must realize we will stick to our course. The European Union has the necessary framework to address all challenges that can appear," he said.

High debt levels in a number of euro zone countries, including Greece and Portugal have prompted traders to bet that those countries could default on their repayments, sending spreads wider and putting pressure on the euro in recent weeks.