Cutting entitlement spending is central to resolving the long-term fiscal challenges of the U.S., Starwoods CEO Frits von Paasschen told CNBC on Monday, which may end up consigned to a European style debt crisis if not reined in.
As the impasse over the "fiscal cliff" lumbers toward its year-end deadline, von Paasschen told CNBC's "Squawk Box" that "everybody has to give somewhere" in the debate over taxes and spending. He suggested that the recent downturn in U.S. economic data may reflect how the uncertainty is starting to register with the broader population. (Read more: A '40% Chance' of Cliff Deal Before Year End: Bowles.)
"From a business perspective, uncertainty is very costly. The longer we go without understanding what's going on the worse we get," he said.