Markets

Zombie light but eurozone too tight

Japan's economic bubble burst in the early 1990s. Its 'lost decade' is a historic warning for countries struggling to recover from financial crises. Paul Donovan, global economist at UBS, says there are few signs of Japan's zombie company problem in the eurozone, but warns that Germany's tight discipline is the wrong approach to the continent's travails, and says Europe risks heading down Japan's route.