Citigroup's Buiter on French Election, Italian Referendum

The video discusses the political landscape in France, focusing on Mr. Feel's nomination and its potential to reduce political risk. It then shifts to the stability of the European Union, considering the implications of Brexit. The Italian referendum is analyzed, highlighting the risks it poses to the euro and the potential for political upheaval. The impact on Italian banks and the broader European banking sector is also examined, emphasizing the challenges of recapitalization and political consequences.

Discuss the significance of Italy's sovereign debt in the context of its economic stability.

What risks does the Italian banking sector face if the referendum fails?