Economic data “better than expected”
ING Bank head of macro and consumer economics Maarten Leen says in the latest eZonomics economic update video that the European Central Bank’s “generous” long-term liquidity operation is an important factor, as are “better than expected” economic data in the United States and Germany.
Greece must do better
But Leen says a bitter turn could be on the way. More fiscal austerity is likely to become a headwind to growth in Europe and the eurocrisis is ongoing.
“Greece is making far too little progress in making its economy more competitive; a necessary condition for long term debt sustainability,” says Leen. “Financial market sentiment has definitely improved but it is too soon to conclude that all is going to be well.”