German Chancellor Angela Merkel delivered an unusually negative assessment of Europe's effort to overcome its debt crisis

The remarks, delivered in a speech to a German employers' association, accelerated a selloff in the euro, which hit its lowest level in two months.

The tone of Ms. Merkel's comments, coming less than 48 hours after Ireland buckled to pressure to accept a bailout from European institutions and the International Monetary Fund, offered a surprising contrast to the efforts of other European leaders in recent days to bolster confidence in the euro.

Her remarks will likely fuel criticism that Germany's tough rhetoric on bailouts in recent weeks has undermined efforts to allay concerns over the future of the euro and Europe's ability to resolve its credit crisis. Germany's position as Europe's largest economy and most populous country lend particular weight to its leaders' views, both in other European capitals and among investors.

Ms. Merkel's speech drew a rebuke from Ewald Nowotny, a member of the European Central Bank's governing council. Mr. Nowotny, president of Austria's central bank, told Austrian state television that the chancellor's remarks were 'irritating.' Individual countries within the euro zone might be in peril, but not the common currency itself, he said. To suggest otherwise was 'reckless,' he said.

Ms. Merkel said she didn't want to overdramatize the situation, but added that a year ago, no one would have anticipated the steps the European Union has been forced to take to shore up the euro.

Despite the uncertainties surrounding the euro, Ms. Merkel reiterated Germany's call for bond investors to share some the pain in European bailouts following the expiration of the current rescue facility in 2013, a stance critics blame for unnerving markets in recent weeks.