Wed 24 May 2023 - 15:00 BST / 10:00 EDT

The EU is currently designing an anti-China policy – with restrictions on trade and investments, and with secondary sanctions on Chinese companies delivering dual-use goods to Russia. This is quite an escalation. Wolfgang believes this is going way too far.

The more immediate macroeconomic threat to Europe is the long-term impact of fiscal and monetary profligacy. Interest rates will be higher for longer than markets expect.