At the beginning of 2013, Stratfor said this would be the year that the deep, structural weaknesses in Europe and China would present the leaders of these two pillars of the international system with a painful reality: The short-term remedies implemented so far will not be enough to prevent greater instability down the line. Indeed, in the past quarter, Europe's leaders began a critical discussion on ways to address youth unemployment while grappling with existential questions on the costs and benefits of deepening European integration in order to manage the crisis. And as the third quarter begins, China is making painful moves to address major imbalances in its financial system amid slowing worldwide growth. Europe's crisis is still at a stage in which a deceptive calm will prevail in the street and in the financial markets. Softer deficit targets, a guarantee of European Central Bank intervention in sovereign markets, healthy tourism receipts from the still-sizable number of
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