Realistically, it will be quite some time before the Europeans will be able to say these problems have been put behind them, even if things go well. Turning to the domestic economy, the sequence of changes in assessment has tended to be the obverse of what we have seen internationally.
Perhaps most fundamentally, the countries which received huge capital inflows in the first half of the 1990s offered high interest rates (real and nominal), not as a temporary cyclical policy response to the phase of the cycle, but on a continuing basis.