Four years into the crisis, a sense of cautious optimism has returned to the eurozone. After a relative drought, capital is flowing back to peripheral governments, allowing their borrowing costs to tumble.

This change of sentiment is most visible in Ireland. At the peak of the crisis, the yield on Dublin’s 10-year bonds soared to 14 per cent. This week, in the first auction since its rescue programme exit, the Irish government raised €3.75bn at a rate of just 3.54 per cent. Spanish and Italian bonds are also back in demand – the countries’ borrowing costs are down to 2010 levels.

The reversal reflects a fundamental shift in the way markets have come to perceive the eurozone. Since Mario Draghi, European Central Bank president, vowed in 2012 to do “whatever it takes” to save the euro, the danger of a break-up of the single currency has all but disappeared. Investors are also encouraged by the efforts made by some countries – most notably Spain and Ireland – to improve the external competitiveness of their economies. In a world of high liquidity and low yields, the reasonable returns offered by the bonds of the eurozone periphery are attractive.