Will Europe fall into a Japan-style slump?

“Viewed from one perspective, the euro area is a minor miracle,” says The Economist. In 2012 it looked set to “collapse in a heap” as the southern states slid towards bankruptcy. Now it’s not only intact, but it has a new member.

Latvia became the 18th country to join in January this year. And the economy is recovering after a double-dip recession lasting 18 months.

The rebound has been “feeble, but sustained”. Eurozone output grew by 0.2% in the fourth quarter of 2013. Even Spain and Italy managed to return to growth, helped by falling bond [...]

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