Europe's peripheral economies: Back from the brink?

The eurozone has seen an internal shift in economic fortunes of late - the focus of investor concern no longer rests with the 'periphery' but with the 'core' instead.

Indeed, while the economies of France and Germany look beset by challenges, the likes of Ireland, Spain and Italy, not so long ago of 'PIIGS' infamy, are in fact the bright spots of the region. We have long appreciated the benefits of Irish companies, helped by domestic GDP growth of 7% in 2015 and an expected growth rate of close to 5% in 2016. The way in which Irish authorities have reacted in the post-crisis years has been admirable; rent caps to limit the overheating Dublin property market and sensible macro-prudential lending rules are two such examples. Such policies have led...