Live on Bloomberg TV

00:00No I think Mario Draghi made clear that support support is needed especially to reach inflation numbers more quickly and to close the output gap to get employment to get jobs more quickly and he really underlined that time matters really. I mean time is relevant because if we don't speed up people will get unhappy . Productivity will go down people will lose their jobs and just you know give up finding new jobs. And that is very bad for our economies very bad times and very bad Frank bad frankly also for popular support. I know. Control of the problems that we keep on being told this and nothing happens yeah I mean I think we are really sort of in a Catch 22 situation on the one hand we know that governments need to act on the other hand governments are afraid to act and do more . Also because political support is already being quite weak so it's a bit of a catch 22 situation. I have to say right so again Mario Draghi saying that the economic cost of reform of delaying reform is just too high. What is the chatter over there where you are at the summit. Do people talk about Donald Trump or are they talking about Brexit Well I think a lot of people are talking about Brexit. Much fewer talking really about Donald Trump and about Brexit. I think there's a there's a lot of fear that this will happen and if it happens. People are afraid that you know the policy system may not be able to quickly respond to this. And I think this is a real danger. And of course some have the view that in fact the policy the impact on markets would be much less than what most people in the markets himself think. So I think there's a little bit of complacency certainly here in Brussels about the market consequences off of potential default on June 23. Dr. Wolf. Good morning thrilled to have you on our program with Bruegel. When I look at Europe and this goes back to your research a good 10 years ago you speak of exhaustion is an endogenous shocks. I want you to explain to our global audience the import of France in terms of writing Europe right now. What does France need to do to assist Germany and the United Kingdom to a better Europe look Frances an absolutely central country for the European Union and for the euro area in particular. And I think the key question is also after leaving after Brexit whether Germany and France will work more closely together and find the political trust find the will to really move the European project forward or not. And I think Germany really thinks of France at this stage that France is not really doing enough reforms while France is quite afraid that Germany is actually turning its back in one way or another to the European Union. So I think really both countries have to do quite a bit and especially France I think has to do this domestic reform get its domestic house in order do the right labour market reforms so that young people have a chance to find a job again and rely less on the government to rely less on the state to generate growth and trust more of the private sector. Really I think that's that's right. You're really looking into .

No schedule data available.

Wolff: EU Complacency Over Brexit's Consequences

Guntram Wolff, director at Bruegel, discusses the economic efforts of European Central Bank President Mario Draghi, how European politicians are approaching the Brexit Vote, and the importance of French and German leadership of Europe. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)

More From Bloomberg Surveillance
All episodes and clips

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips