Evidence that Europe has turned a corner can be found in countries' falling borrowing costs, rising stock markets and a slow but steady stabilization of the region's banking system:
— After months of withdrawals, deposits are trickling back into Greek and Spanish banks, signaling that fears of their imminent financial collapse are abating.
[...] U.S. money market mutual funds loaned 16 percent more to eurozone banks in September.
Gatherings of European financial ministers no longer cause global stock and bond markets to gyrate with every sign of progress or a setback.
Among the challenges are reducing regulations and other costs for businesses in order to stimulate economic growth, and imposing more centralized authority over budgets to prevent countries from ever again spending beyond their means.
The ECB said Sept. 6 that it was willing to buy unlimited amounts of government bonds issued by countries struggling to pay their debts.
The ECB's pledge instantly lowered borrowing costs for Spain and Italy, which earlier in the year had faced the same kinds of financial pressures that forced Ireland, Greece and Spain to seek bailouts.
The Greek Parliament took a big step Wednesday toward securing its next batch of rescue loans from the troika by approving a new round of tax hikes and spending cuts.
The ECB's offer two months ago to buy unlimited amounts of government bonds is a potential life-saver, but the country's Prime Minister Mariano Rajoy needs to formally request such aid.
Analysts say that if he waits too long Spain's borrowing costs could rise again to unsustainable levels and reignite broader fears in financial markets.
Weakened by massive losses on the government bonds they bought and real estate loans that aren't being repaid, banks across the eurozone have been propped up by governments that are themselves struggling financially.
— After months of withdrawals, deposits are trickling back into Greek and Spanish banks, signaling that fears of their imminent financial collapse are abating.
[...] U.S. money market mutual funds loaned 16 percent more to eurozone banks in September.
Gatherings of European financial ministers no longer cause global stock and bond markets to gyrate with every sign of progress or a setback.
Among the challenges are reducing regulations and other costs for businesses in order to stimulate economic growth, and imposing more centralized authority over budgets to prevent countries from ever again spending beyond their means.
The ECB said Sept. 6 that it was willing to buy unlimited amounts of government bonds issued by countries struggling to pay their debts.
The ECB's pledge instantly lowered borrowing costs for Spain and Italy, which earlier in the year had faced the same kinds of financial pressures that forced Ireland, Greece and Spain to seek bailouts.
The Greek Parliament took a big step Wednesday toward securing its next batch of rescue loans from the troika by approving a new round of tax hikes and spending cuts.
The ECB's offer two months ago to buy unlimited amounts of government bonds is a potential life-saver, but the country's Prime Minister Mariano Rajoy needs to formally request such aid.
Analysts say that if he waits too long Spain's borrowing costs could rise again to unsustainable levels and reignite broader fears in financial markets.
Weakened by massive losses on the government bonds they bought and real estate loans that aren't being repaid, banks across the eurozone have been propped up by governments that are themselves struggling financially.
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