If future proof was needed that the euro crisis has ended as far as bond markets are concerned, it was provided by Ireland's successful bond auction on January 7th. But the legacy of the acute phase of the crisis, when weak governments on the periphery of the euro area were besieged by bond markets, remains a grim one. The euro-wide unemployment rate stayed stuck at 12.1%, according to official figures published on January 8th.

Even so, unemployment across the euro zone does appear to have stabilised. The hope now is that it may start to edge down as a weak recovery continues. An index of private-sector output compiled by Markit, a data provider, suggests that the euro area grew by 0.2% in the final three months of 2013.

Inflation is now uncomfortably far beneath the target rate set by the European Central Bank (ECB) of below but close to 2%. When overall inflation is so weak, it makes it harder for countries on the periphery to regain competitiveness by keeping their prices down. And it raises the risk of outright deflation. If prices were to start falling, it would intensify the euro zone's woes which are bound up with excessive debt, both public and private. Deflation would cause that debt to rise in real terms. It could also stymie the recovery as people delay purchases because they will become cheaper. But if inflation weakens further the ECB may have to embrace radical remedies, such as setting negative interest rates on deposits.