Overall, however, given the combination of the ECB's unwillingness to address financial market fragmentation and the current austerity drive in most euro zone countries, we continue to expect a continuation of the economic crisis in the remainder of the year.

As I write, an MoD plane carrying one million Euros is being airlifted to Cyprus for UK military personnel. It must be a new and very literal definition of 'helicopter money'. And that's the problem. As long as policymakers continue to opt for radically different solutions in every case - then fear and loathing will never be far away from markets and now, once again, from savers.

Inflation is going to be a big story in 2013 worldwide but especially for the UK. While the Bank of England's asset purchase program isn't in itself inflationary, the devaluation of sterling is. Our largest import through 2013, because of the Bank's monetary policy, will be inflation.

If we are all going to be taking a larger stake in the restructuring of the European banking system, we have to do it right.

That said, there have been a couple of positive developments for the global economy over the past month. First of all, the ECB's announcement of a bond-buying programme has buoyed sentiment by averting the prospect of an imminent collapse of the euro zone.

With full tanks, all systems checked and automatic launch sequence ignited, the European Parliament is ready for lift-off. MEPs achieved much in the first part of 2012 that will make a noticeable difference to the everyday life of ordinary citizens, such as lower roaming charges and killing off the controversial anti-counterfeiting agreement. However, there is much to be done in the months to come.

Portugal may well be the country where the eurozone's solidarity is put to the test. Patience with the Greek government's foot-dragging is wearing thin, but Portugal has done all that has been asked of it.

Despite the economic downturn in the region, the political consequences and the incidence of social unrest in eastern Europe has been remarkably limited so far.

It will only be once the eurozone is stabilised and working reasonably effectively, that it will it be possible for people to give time to working out the shape of a new European Union.

Perhaps this cartoon is jumping the gun a little, or maybe it's a glimpse into the future; but in any case here's my cartoon showing Super Mario Draghi taking some drastic long term refinancing action!

Unemployment in the eurozone is at historic highs. Economic growth data are equally depressing while confidence is low among producers and consumers. In short, the stock market rallies of recent months are premature.