However, our analysis suggested that we should not extrapolate that first-quarter surge in growth for the rest of the year – that some of the apparent strength represented a catch-up from a soft fourth quarter, and some other factors were probably temporary.
A perception of Europe as stronger, more cohesive, and more fiscally stable, on the back of increased safe asset issuance, could enhance the perceived stability of its debt issuance and enhance the standing of the euro as a reserve currency. Only time will tell if EU bonds become a benchmark for European financial markets.