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What are Europe’s biggest uncertainties?

Lucrezia Reichlin, Professor of Economics, London Business School:

Well I think if we look at the US, the uncertainty is obviously the Trump factor. And this is what he’s going to do about Trade. You know the difference between words and facts. We are still waiting to see what the story will be. But also I think that the Uncertainty of whats going to happen more generally to the US Economy because many of us think that actually the US economy has peaked. And so, further stimulus as the one that has been announced by Trump, will probably be at this stage, counter productive. Europe has the problems of its own – of course if the US was going to slow down and also be very proactive on trade protection. Europe will be hurt. On the other hand, Europe has now a very convincing recovery and eventually there are good news on this part of the Atlantic.

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