Angela Merkel has indicated that it will take at least 5 years for the Eurozone to recover. From the Telegraph:
Mrs Merkel said that though Europe was on the right path to overcome the crisis, she added: "Whoever thinks this can be fixed in one or two years is wrong."
“We need a long breath of five years and more,” she told a conference in Sternberg, Germany. ...
She is calling for more austerity.
Data on Friday showed that that eurozone's manufacturing sector contracted for the 15th month running in October as output and new orders fell.Europe has an incredibly high unemployment rate among young people. In five years, these people will be unemployable, and create a significant source of social instability. I think that, far before then, and as appears to be happening in Greece, they will turn to fascism or some similar "strong leader" based political party.
Manufacturers were the driving force behind the bloc's recovery from the last recession, but the downturn in factory activity that began in smaller periphery countries has now engulfed core members Germany and France.