Citigroup's Buiter on French Election, Italian Referendum

The video discusses the political landscape in France, focusing on Mr. Feel's nomination and its potential to reduce political risk. It then shifts to the stability of the European Union, considering the implications of Brexit. The Italian referendum is analyzed, highlighting the risks it poses to the euro and the potential for political upheaval. The impact on Italian banks and the broader European banking sector is also examined, emphasizing the challenges of recapitalization and political consequences.

What is the potential impact of Mr. Feel's nomination on the political landscape in France?

• It increases the chances of a nationalist becoming President.

• It reduces the risk of a nationalist presidency.

• It has no impact on the political landscape.

• It guarantees a socialist will become President.

What is a major concern regarding the European Union's stability?

• The UK's decision to remain in the EU.

• The potential failure of the Italian referendum.

• The election of a new French President.

• The stability of the German economy.

What could happen if the Italian referendum fails?

• The Italian economy will immediately recover.

• An anti-euro government might take over.

• Prime Minister Renzi will remain in power.

• Italy will strengthen its ties with the EU.

How might the Italian referendum affect the banking sector?

• It will stabilize the European banking sector.

• It could lead to the recapitalization of banks.

• It will have no impact on banks.

• Banks will receive automatic government support.

What is a potential consequence of a failed Italian referendum for the European banking sector?

• Increased stability and growth.

• Immediate recovery of bank stocks.

• Political and economic uncertainty.

• A boost in investor confidence.