The eurozone economy needs a kick-start

With Greek banks raising €8.5 billion worth of equity from investors, Italian government bond yields touching all-time lows, and the German economy growing at an annualised 3.3 per cent in the first quarter of 2014, the eurozone appears to have finally overcome the crisis. Despite such positive news, there is ample reason for caution about the outlook for the currency union. Unless eurozone policy-makers do more to bolster demand and target structural reforms on product as well as labour markets, optimism is likely to prove short-lived.