LUXEMBOURG (AP) — The European Union's financial affairs chief is "less pessimistic" about the future of the euro than he was earlier this year — but warned that the region was still a long way to go before the crisis over too much debt is solved.

Olli Rehn, the EU's financial and monetary affairs commissioner, said the organization's ability to react to the financial crisis in the 17 countries that use the euro has much improved compared with two years ago when the crisis began.

He also welcomed the official launch Monday of Europe's new €500 billion ($647.9 billion) permanent bailout fund, the European Stability Mechanism.