Crisis could still become a blessing in disguise for the Eurozone

A positive spin on the austerity..... And a falling EURUSD is good for european equity markets in price terms as it becomes more interesting to large US funds!? (Just as the weak dollar never hurt the Dow etc for long)

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A blessing in disguise?

With luck, the crisis could still become a blessing in disguise for the Eurozone.

(1) The periphery is now delivering some long-needed fiscal and structural reforms.

(2) Europe's fiscal surveillance tools are evolving in a way that will make a repeat crisis more unlikely.

(3) Continental Europe is getting a headstart on the fiscal adjustment that other parts of the Western world will likely have to tackle as well in the years ahead, in our view.

Additionally, Britain has now ended up with the Conservative-Liberal coalition that is so familiar to the continent. London may now move to a sustainable fiscal stance, that is to a fiscal stance much more like that of Rome and Berlin, in our view.

source: BofA

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