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It looked like we were about to be treated to a revival of the eurozone crisis, thanks to an apparent constitutional upheaval in Rome. It was as if a TV series had suddenly been recommissioned for viewers. Thankfully, the crisis appears to have passed. Yes, Italy now has a government that is not exactly a fan of Brussels or the eurozone, but a recent poll shows that Italians are still 70% in favour of staying in the eurozone. Yet again reports of the single currency’s demise have been greatly exaggerated.
A look at the current state of the eurozone economy should help provide us with a better overview of the outlook for this part of the global economy and for eurozone stock markets. Starting with the unemployment rate, we can see that, despite a brief bounce two months ago, the steady decline from the 2013 highs around 12% remains intact: