Going forward, the European economy is expected to continue to see moderate recovery as depreciation of the euro and the monetary easing measures by the European Central Bank (ECB) are taking effect. Currently, the largest uncertainty over Europe is the sovereign debt problem in Greece.
At the Euro Summit this month, leaders agreed in principle that they were ready to start negotiations on a European Stability Mechanism (ESM) program on the condition that various requirements would be met by Greek authorities. The scenario in which Greece will exit from the eurozone was avoided, and global financial markets have reacted positively.