Macro Strategy Views Podcast: The future of Europe – Why reforms are so hard

In our weekly podcast, Macro Strategy Views, we discuss the prospects for European reforms in light of the European election. Global Head of FI&C Research Thomas Harr chairs today’s podcast and Senior Analyst Piet Christiansen and Senior Analyst Aila Mihr join him. The fiscal rules are too pro-cyclical, complicated and are not working properly. We are pessimistic that a European Deposit Insurance Scheme and a fiscal stabilisation function within the EU will happen. Hence, we believe the sovereign-bank doom loop will persist. This leaves the ESM and ECB as the sole crisis institutions. We discuss how they could react in the next crisis.