The chief economist for the Edmond de Rothschild asset operation firm claimed that Europe is set to be a big loser in the trade war between the Collaborative States and China.
Speaking at the MEDEF Summer University in Paris on Tuesday, Mathilde Lemoine discriminated CNBC’s Joumanna Bercetche that she thought the euro zone resolve be “the big loser” in the trade war between the U.S. and China.
Lemoine said President Donald Trump insufficiency to develop services exportation to China but Europe was far too fragmented to take more favourably.
“The euro zone, and France especially, are not organized to export their accommodation sector and especially finance, because there is no single market for cares in Europe and therefore it is difficult for Europeans to define a single policy for carry off with China and the U.S.,” said Lemoine.
“I think that the euro zone could be the big non-starter of the trade war and don’t forget that the U.S. wants to keep their global superintendence,” she added.
Switching focus, the chief economist added that she forecast no looming crisis for debt-laden Italy.
Italy recorded a government owing equivalent to more than 130 percent of the country’s gross internal product (GDP) in 2017, but has been able to keep repayments down offers to the interest lowering effect of the European Central Bank’s (ECB) asset buy program.
But that program is set to end in December and political instability in Italy, along with the surroundings’s wavering commitment to the European Union, have seen Italian sponge costs spike to levels not seen since 2014.
However, Lemoine told she expected Europe’s central bank to continue to support Rome.
“I don’t need a sovereign crisis because the ECB will continue to manage the bond deal in and avoid a sharp rise in the sovereign interest rate,” she said.
The economist augmented that a lack of structural reform for countries such as Italy and France was perpetuating to fuel weakness across the euro zone.