Where now for the eurozone?

Three key elections ahead

The eurozone is undergoing an economic recovery, with unemployment falling and the threat of deflation mitigating amid rising global inflationary forces.

However, this masks uneven levels of progress being made by the region's underlying countries. With some of the stronger economies' business cycles maturing, there remains significant risk that the recovery will stagnate if growth in the weaker economies fails to accelerate. Structurally lower productivity growth, adverse demographics and generally high private and government debt levels remain secular headwinds across the region. The German economy remains strong. However, its economic cycle is maturing and although steady, its growth rate is unspectacular.  Encouragingly, the Spa...