Diverging perspectives for Euroarea

Nordea Bank notes..

• At country level, we expect the German economy to grow by 1½% to 2% in 2015 and 2016.
  
  
• A rising tide lifts all boats, as the saying goes, and so we also expect the French and Italian economies to  pick up. 
  
  
• However, growth is likely to remain subdued due to a lack of competitiveness and unresolved structural problems.
  
  
• With an annual growth rate of 2% to 2½%, we expect Spain to remain the fastest growing among the larger  economies. The recovery seems fairly broad-based and stable. 
  
  
• Regional and national elections later this year will be a first test of whether Greek-style political changes  will spread to other countries.
  
  
• It's our base case that Spain will continue to play by the rules of the creditor countries.