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As 2012 draws to a close, how successful has European government action been in trying to solve the crisis? Eurozone growth is desperately flat and the outlook for 2013 is still bleak. But when in the future we look back on recent measures, we might well see 2012 as a turning point for Europe.
SLOW GROWTH BUT DEFINITE POLITICAL PROGRESS
The situation is grim if we only look at macroeconomic figures. Growth forecasts are hardly encouraging, especially in countries which have gone for full-scale austerity. But stand back a little, and Europe is like an impressionist painting: if the eye focuses on the small dots, it misses the overall picture. A number of new factors are now in play and they have helped avert systemic risk and restore...
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