• Says US money mkts are coming back to invest in Euro area
  • Weak trend expected economic activity trend to continue in coming months
  • Positive signs of return to confidence in Euro area
  • Fiscal efforts are bearing fruit in Euro area
  • Structural reforms must be vigorously pursued
  • Need EU banking union to break vicious cycle between banking and sov. risk
  • Doubts and delays on govmt reforms create volatility, which often leads to sharp rise in rates