Whats Driving the Euro Markets?

Mm I don't see it that way. The most important thing right now is the broad recovery of Eurozone-economies led by Germany (as always). The fact that Europe is return to growth (although only marginal growth) is the most important thing right now. For the coming years however, austerity will remain because of the massive debt pile that needs to be reduced in many countries. This will definitely stand in the way of more rapid economic growth. The outlook for the short-term may relatively pretty due to the fact that the past 2 years were terrible, but the long-term outlook is still rather depressing. European stocks trade a low multiples though, so that is not to say that stock markets could not advance the coming years.