The European economy has shown further signs of recovery, with the euro-zone finally emerging from recession in the second quarter and other parts of the continent also faring better. But growth in the peripheral countries of the currency union looks set to remain well below the rates needed to tackle the problems of high unemployment and crippling debt. Meanwhile, hopes of a more accommodating stance amongst the core countries after the German election look unlikely to be fulfilled and steps towards banking and fiscal union remain painfully slow. Against this background, the region’s debt crisis remains unresolved and the lingering prospect of additional bail-outs and even sovereign debt restructurings could yet see market pressures re-escalate.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services