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The immediate crisis in the euro zone eased last week when Spanish and Portuguese bond auctions were more successful than expected.
Inflation in the euro zone eased slightly to 2.1percentt in December, edging closer to the European Central Bank's 2.0percenttolerancece threshold, data from Eurostat showed.
Manufacturing growth across the currency zone eased off slightly in April from March's 10-month high, according to the latest manufacturing purchasing managers' index (PMI) poll by the financial information company Markit.
Inflation in the euro zone eased to 2.5% in the year to February from 2.7% in January, when the introduction of the euro encouraged some firms to round up their prices.
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It is in the European Economic Area EEAA), meaning it respects single market rules, and is in the Schengen zone, easing cross-border travel.
In a sign that market tension about the euro zone has eased somewhat, Spain and France were able to sell bonds at reduced interest rates Thursday.
Fear of a breakup of the euro zone has eased after the European Central Bank said in September it was willing to buy bonds from countries like Spain, if necessary, to keep their borrowing costs under control.
The downbeat Bundesbank report came a week after Mario Draghi, the European central bank's president, argued that there were signs, albeit tentative ones, that tensions in the zone had eased.
Although the situation in the euro zone has eased in recent weeks, the sharp movements in the SovX are widely attributed to new European Union rules on CDSs which come into force on November 1st.
FRANKFURT — Tensions in the euro zone have eased noticeably since the summer, the European Central Bank said Friday, but it warned that the situation remained fragile in part because commercial banks were still in a weakened state.
European Central Bank President Jean-Claude Trichet should be happy: Inflation data released on Wednesday showed that price increases in the euro zone had eased in September, allowing more leeway for an easing of interest rates.
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