* Spain, Portugal, Italy and Greece, all deeply affected by Europe's sovereign debt crisis over a decade ago, have shown renewed vitality and resilience in recent years. * Southern Europe's service-heavy economies and growing use of renewable energy had made them less vulnerable to some of the energy and trade shocks weighing on Europe's industrial core. * The IMF's 2025 Regional Economic Outlook urged Europe to accelerate structural reforms while keeping trade open. Southern European countries have sought to combine the two, building on post-crisis reforms and existing industrial strengths while pursuing trade and investment ties with emerging economies.
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