On the mend? Why Europe is looking better again

In the fourth quarter of 2012, the eurozone recession deepened, dragged down by France and Italy and even the mighty economic powerhouse of Germany. France’s debt to GDP ratio is now more than 90% and it is losing global competitiveness owing to rising labour costs, while a raft of tax increases imposed by President Hollande is adding to France’s woes. Meanwhile, Italy’s output remains below 2007 pre-crisis levels, the socio-economic divide between the north and the south remains and the inconclusive outcome of the recent general election confirms it is a deeply fragmented country. ...