Confidence is slowly returning to both financial markets and high streets, even if growth and job prospects remain weak – the latter two being lagging indicators of the recovery under way. All this shows that European countries can turn themselves around. To sum up the strengths: the “repair work” on the euro area foundations is under way. Imbalances are slowly receding.
Also there is the wide international circulation and relative strength of the euro as well as a stable demand for the euro as a reserve currency. Yet, we are aware that deep reforms throughout the new framework are only as effective as they are completed, transposed, well explained, understood, adhered to, and given the time to display their effects.