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Eurozone set for volatile 2014 as it tackles banks

Published on Dec 29, 2013 3:26 PM
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The euro logo is seen in front of the European Central Bank (ECB) in Frankfurt/Main, Germany, on Dec 5, 2013. The eurozone is finally set to return to growth in 2014 but the single currency bloc may not have put its crisis behind it as efforts to shore up its banks could boomerang. -- FILE PHOTO: AFP

PARIS (AFP) - The eurozone is finally set to return to growth in 2014 but the single currency bloc may not have put its crisis behind it as efforts to shore up its banks could boomerang.

After beating back market panic that the eurozone was set to break up, eurozone nations moved in 2012 and 2013 to put their finances on a stable footing and strengthen the banking sector.

A new pact puts their finances under stricter control, with an obligation to cut the high debt levels seen as one of the reasons behind the crisis.

Eurozone leaders also moved to create a banking union, to reinforce lenders and reduce the likelihood wobbly banks would force countries into bailouts.

 
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