"What we have seen in Europe is a bit of abatement in the rate of decline, we do still see challenging economic conditions certainly in the southern part of Europe"
- Kevin Entricken, CFO of Wolters Kluwer
The Eurozone economy has emerged from its longest-ever recession and it seems the crisis is calming. Nonetheless, some of region's countries, particularly from the South, are still suffering from the crisis, and economic conditions remain challenging. This view was expressed by Kevin Entricken from Wolters Kluwer. These comments come against a backdrop of unclear global outlook, with investors all over the world remaining uncertain about central banks' future actions, including the Fed, which has injected liquidity and buoyed investor mood. The Eurozone is developing, albeit slowly. Moreover, the growth outlook looks shaky at best. During the third quarter, the 17-nation bloc expanded by just 0.1%, marking a slowdown from a 0.3% growth in the previous quarter.
Another concern for European policymakers remains Euro's strength. The single currency is the second best-performing major currency this year; however, it is likely to weigh on the economy in 2014, according to Nomura Holding. While last year politics were discussing a possibility of abandoning the Euro, this time the strength of shared currency is starting to be a real issue, as it will negatively affect exporters, making their products less competitive globally. On November 19, the EUR/JPY has climbed to a four-year high, amid ECB board member comments that policymakers should be careful about using negative interest rates to counter weak inflationary pressure.
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