Could Europe return to normal?
Investors are now very pessimistic about Europe’s situation, which has led to massive capital outflows of all kinds of from the euro zone. Could Europe’s situation and investors’ perception of Europe return to normal ? This is possible , since: Free trade for g oods between the United Kingdom and the EU will probably be maintained; It seems that the Italian government is seeking a compromise with the European Commission on Italy’s fiscal deficit; The reforms conducted in France will end up having a positive effect on skills, the employment rate and productivity gains; A few (small) institutional advances are possible, such as the draft of a euro-zone budget; Eventually, everybody will be convinced that no country is going to leave the euro zone.