Eurozone financial markets have become dependent on monetary stimulus.

So much so that “weaning [those] markets off easy monetary policy will be a delicate exercise for the ECB and is a topic we think will gain prominence next year,” says Andrew Bosomworth, head of PIMCO portfolio management in Germany, in a recent insights article.

He adds, “The ECB effectively saved the euro in 2012 by acting as ‘lender of last resort’ to its financially troubled sovereign shareholders. Fiscal policymakers assisted too, ultimately establishing the European Stability Mechanism (ESM) to support eurozone countries in financial difficulty […].”

In essence, says Bosomworth, “The ESM added an important fiscal pillar (alongside the ECB’s monetary one) to the eurozone governance structure, which lacks its own parliament and budget,” even though ESM fiscal resources are limited.

Read: ECB manages stimulus expectations

These days, the ECB is focusing on price stability, says Bosomworth. And with inflation flagging, that means the central bank will likely ease once again.

Read more on the what the future holds for the eurozone.

Germany’s leading the pack

German businesses were more optimistic in October, shrugging off woes tied to the countries’ biggest banks and the implications of Britain’s vote to leave the European Union.

Read: Brexit would hurt Britain more than eurozone

The closely watched Ifo institute index rose to 110.5 points from 109.5 points in September, and Ifo head Clemens Fuest said in a statement Tuesday that “the upturn in the German economy is gathering impetus.”

The Munich-based Ifo bases the index on survey responses from 7,000 firms in manufacturing, retail, wholesaling and construction.

Germany, the largest of the 19 countries that use the euro, enjoys moderate growth and very low unemployment of 4.2%. Export strength has also been supported more recently by domestic consumer demand.

The economy grew by a quarterly rate of 0.4%in the second quarter.

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