• 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