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If You Think Europe Is Fine, Look at Italy

"It has become fashionable not to worry about Europe and the euro area. This complacency has a serious flaw: Italy.

"Optimists argue that Europe is on the mend. The central bank is maintaining stimulus,Germany’s export potential remains large, and France will continue to be a haven for investors. Struggling countries such as Greece and Portugal represent less than a 10th of the euro area’s economic output and population.