The eurozone’s economic troubles are far from over, writes Natixis in Investment Europe

Despite significantly calmer sovereign risk across the eurozone, the public debt ratios in the southern peripheral countries continue to rise, while high fiscal deficits, low growth and weak inflation hinder the credibility of debt-mutualisation with the core countries. Writing in this month’s edition of Investment Europe, Patrick Artus, chief economist at Natixis, takes a detailed look at these hazards to economic health – and asks why the financial markets don’t seem to be penalising the region.

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