There remain reasons to be optimistic on the European outlook, despite continuing sovereign debt crises according to Franklin Templeton Investment Management.

In a statement, the firm said the Greek crisis has shone a light on the euro’s “original sin”; the notion that one currency and 17 national budget and fiscal policies were viable in the long run.

Franklin European Mutual Fund’s Philippe Brugere-Trelat said Greek debt will “probably” have to be restructured, though no easy solutions exist.

“We cannot predict what will happen, but we are hopeful that European politicians may be able to find a comprehensive and durable solution. Examining the history of European unity, we can see a pattern of fits and bounds; we hope that it will not be different this time. It is important to remember that the introduction of the euro ushered in a period of stability and prosperity that Europe had not seen in a hundred years, in our assessment,” he said.

While the sovereign debt challenge continues, Brugere-Trelat said the continued strength of European macroeconomic data points and the high levels of business confidence in Germany, France, and Sweden are causes for optimism.

“Valuations for European companies are currently extremely attractive to us, especially when compared with U.S. valuations and European corporate earnings. Considering market performance over the last year and a half, select European companies may provide an interesting alternative for investors looking to capitalize on unfairly penalized companies,” he said.

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