Eurozone economies are expected to contract 0.1 percent this year. But all isn’t gloom and doom. The last half of 2013 is looking increasingly positive, as the European Union makes headway in dealing with its troubled banks.

In June, EU finance ministers agreed on how to rescue troubled banks, requiring bank investors and large depositors to take a greater role in bailing out failing institutions, before governments step in with taxpayer money. The European Parliament must still ratify this agreement and a number of details remain to be worked out, but a clear resolution plan will go a long way towards calming the markets.

In the meantime, select European blue chips remain attractive. In many cases, only about a third of revenue comes from their country of origin. And the emerging markets in particular have become drivers of both revenue and earnings growth.

Eurostat, the statistics arm of the European Union, is forecasting that the region’s GDP will expand 1.4 percent in 2014. If this proves accurate, investors in European equities should enjoy an early mover advantage as regional sentiment improves.

Luxottica Group v (NYSE: LUX)

Recent Price: $55.29; Yield: 1.4%; 2012 Earnings Per Share (EPS): $1.17; 2013 EPS Consensus Estimate: $1.42

The world’s largest eyewear manufacturer and retailer, Italy’s Luxottica is the parent company of Lens- Crafters, Pearle Vision and Sunglass Hut, with more than 7,000 retail locations worldwide. It also owns the iconic Oakley and Ray-Ban sunglasses brands, and offers a wide array of designer-licensed frames such as Chanel, Coach, Burberry, Prada and Armani.

Europe, which accounts for 40 percent of Luxottica’s revenue, is a significant growth driver. Luxottica’s sales in the region were up 14 percent in the second quarter. Emerging markets remain the key to growth overall, with sales there shooting up 22 percent during last quarter.

Eye for Value

As Luxottica’s own in-house brands account for a growing percentage of sales, its profitability is rising. In the first half of this year, the operating profit margin hit an impressive 16.6 percent thanks to cost controls and streamlined supply chains.

A model of vertical integration, Luxottica enjoys a massive geographic footprint. Few competitors can match the company’s low costs and high volume, leaving it plenty of headroom for growth. Management is now expanding into the world’s megacities such as Delhi, Shanghai and Jakarta, where there’s a dearth of eyewear and fashion accessories.

Grifols v (NSDQ: GRFS)

Recent Price: $32.52; Yield: 1%; 2012 Earnings Per Share (EPS): $0.75; 2013 EPS ConsensusEstimate: $1.08

Spain’s Grifols is an innovative health care company that does most of its business in emerging markets. It generates over 70 percent of its sales outside its recession-hit homeland.

Grifols offers a wide array of health care products in three main areas. Its diagnostic division provides equipment and chemicals used in blood analysis and storage. The hospital division provides feeding tubes, medical devices used in surgical procedures, intravenous fluid solutions and a variety of hospital logistics systems. The biosciences division supplies blood-therapy treatments. It also provides treatments for genetic pulmonary disorders, as well as vaccines for rabies, tetanus, hepatitis and chickenpox.

Leading the Pack

Grifols’ R&D efforts have spawned a host of new treatments, the sophistication of which set the company apart from its peers. Among the company’s most in-demand products is Gamunex, an intravenous immune globulin (IVIG) used to treat progressive nerve damage that results in pain and weakness in a patient’s extremities. Gamunex is the only treatment of its kind.

Grifols has historically been a low-volatility stock, with revenues and earnings typically growing in the mid-single digits.

The company’s second-quarter 2013 revenue was up 7 percent year-over- year, as bioscience sales increased 7 percent on strong demand from China and the US, though the fastest growth was in Latin America. Net profit rose 37 percent in the first half of the year, to EUR183 million, thanks to a drop in interest expense.