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The Eurozone is Still Vulnerable

The eurozone remains fragile and uninsured against the risk of another crisis, not least because it is still vulnerable to asymmetric boom-and-bust cycles. Although reforms that were implemented in response to the last crisis have improved the situation at the aggregate level, efforts to achieve fiscal convergence have failed.

BRUSSELS – Despite recently experiencing an overall economic uptick, the eurozone remains fragile and uninsured against the risk of another crisis. And a major reason is that it is still vulnerable to asymmetric boom-and-bust cycles.

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