Citi's Buiter Sees Europe's Cyclical Recovery Under 'Serious Threat'

The transcript discusses the necessity for Europe to clear its troubled banking system to escape a disinflationary trap, given its reliance on banking for financial intermediation. It suggests cross-border mergers and acquisitions as a solution, despite limited regulatory appetite. The conversation also touches on the potential recession, attributing it to cyclical factors and a decline in business optimism, particularly affecting capital expenditure in the Eurozone and the UK.

What is the prerequisite for Europe to get out of a disinflationary trap?

How does Europe’s dependence on banking affect its financial intermediation compared to the USA and the UK?

What is suggested as an effective way to strengthen the banking system in Europe?

What factors contribute to the current GDP slowdown according to the text?

What is the general sentiment regarding business optimism in the eurozone and the UK?