The argument for Europe

European equity markets have had a difficult start to the year. Investor sentiment has deteriorated in sympathy with US markets and, as a result, the major European indices have fallen since the beginning of 2001. However, the case for investing in Europe remains compelling. In the short to medium term, the macroeconomic fundamentals are stronger for Europe than they are for the US. Over a longer time horizon, the argument for Europe is equally persuasive because of the significant benefits that restructuring and reforms at both corporate and government level will continue to bring ab...