As European markets recover from the longest losing streak since November, the correction has been a healthy one. The index is still up over 8% this year, despite many of the region’s problems remaining unsolved. Italy’s labor laws, Portugal’s dampened deficit reduction and the ECB looking to unwind support provide significant risks. The meeting of Europe’s Finance ministers this Friday has the potential to drive markets. As expressed by Tim Geitner in the US, Europe is “only at beginning of a very tough, very long, hard road”.
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