For years the economic picture in the eurozone has been characterized by weak growth, low increases in productivity and a gradual upcreep in unit wage costs.
The financial markets are currently reacting extremely sensitively to changes in the rate of inflation in the euro area, with the view prevailing that every further drop in inflation flags up rising deflation risks.
The massive compression in yield spreads for government bonds issued by the EMU "problem countries" would appear to signal the end of the acute financial crisis.
Interest rates have been in decline for the last 20 years. However, most of the time, this was a response to changes in the economic environment and the downward trend was more or less justified in fundamental terms.
The Allianz Euro Monitor, based on 15 indicators, measures macroeconomic imbalances in the eurozone. The results for 2013 show that slow but steady progress is being made towards more balanced growth in the eurozone.
The asset debate has been the subject of intense attention of late: first due to the ECB's study on private assets in Europe - which dubbed Germany the poorhouse of Europe - and second as a result of the policy adopted in response to the crisis and the resulting extremely low interest rates.
A UK departure from the EU would be a lose-lose situation for all. As a global financial services provider, with a keen interest in open and fair markets, it is in the interest of Allianz that this does not happen.
