Emerging from the European crisis

IT

With growth starting to return to the eurozone, one of the major beneficiaries has been ‘emerging' Europe, which is currently seeing a resurgence. David Reid, co-fund manager of the BlackRock Emerging Europe trust, explains.

The eurozone crisis has been a difficult phase for Europe, and structural solutions are still not in place, but something significant has been changing. Up over a third from last year’s trough, the market is now close to post-2008 highs. The monetary policies represented by European Central Bank president Mario Draghi’s famous comment “the ECB is ready to do whatever it takes to preserve the euro” last year, along with some fiscal support from the wealthier nations to the periphery, have kick-started a recovery process in the eurozone. Growth has picked up, consumer confidence is r...