The new euro-zone fiscal rules, improved budget discipline and decisive action by the ECB mean "we have the room to make fiscal policy with a more medium-term perspective, " Mr. Rehn wrote in his blog.

WSJ: In Small, Measured Steps, Europe Loosens Austerity

From a medium-term perspective, while slowing external demand and rising domestic production costs will continue to pose headwinds for Chinese exports, some encouraging developments lead to the ongoing optimism on China, even if it is more subdued.

FORBES: Barclays Urges Caution On China