Bailed out countries ‘are shaping up’

The eurozone is turning into a more balanced and potentially more dynamic economy thanks to market pressure and the constant demand for structural reforms, a study has found.

The sovereign debt crisis has forced Greece, Ireland, Portugal, Spain and Italy to embark on ambitious economic reforms to win back market confidence.

These reforms, while painful at times, have cut labour costs and brought about an “internal devaluation” that has sharpened competitiveness.