The economic upswing in the future euro area is now more broadly based. Internal expansionary forces are in the ascendant. Our trade relations with the crisis regions are not so close that the crises there are bound to trigger a recession in Europe.
But besides the comparatively reassuring perception that those crises are unlikely to spill over to us (at least in the short run) through the channel of trade relations, there is increasing concern that the crises might, instead, come right into our “front room” through the channel of financial relations, via the global financial markets.