Eurozone needs growth in the short term — but can Germany provide this?

The institutional shortcomings of the eurozone have been cruelly exposed over the past four years. These have, in part, been addressed through the creation of a banking union and a bailout fund — the European Stability Mechanism.

Over the longer term, much more needs to be done, including closer fiscal integration and some sort of eurobond. Given that both of these will require treaty change, it is not surprising that politicians have put them on the long finger for the time being.

Anti-euro sentiment has been on the rise over the past few years, both in the periphery and at the core. It would be very difficult to push through any changes now.