Almost there - Europe limps towards 2012 finish line

FXstreet.com (Barcelona) - As markets totter towards the year end, a relative calm has set in across Europe after an often exhausting year which has seen major steps taken towards providing a viable solution to the systemic instability.

European politicians now find themselves in the unfamiliar situation of being unable to effect market sentiment, regardless of their best efforts. A situation which Italy is doing its very best to test as thoroughly and vigorously as possible. After a number of years of dominating market sentiment, the Eurozone finds itself sandwiched between the US, on the verge of a fiscal fail and self created recession, and Japan, who are embarking on a Quantitative adventure in a bid to revitalise their economy.

Germany's Finance Minister Wolfgang Schaeuble spoke yesterday with the Bild newspaper and continued to soothe European waters. "I think we have the worst behind us." He also said that Greece and others have recognized that they can only overcome the crisis by implementing reforms and that the Greek government - which has received two bailouts, "knows that it cannot financially overburden the other euro states." Looking to Germany's neighbour France, he accepted that many in Germany had concerns over the French economy but said that the Government there "knows very well that every country must constantly conduct reforms to remain competitive."