The plan to fund the European Union’s recovery programme via debt issuance has raised hopes that a new type of euro-denominated safe asset could emerge. As a priority, the European Commission needs a strategy to create a liquid and transparent market in EU bonds. For now, funding through EU green bonds would complicate that effort.
Date: September 28, 2020
Topic: Finance & Financial Regulation
To fund its future programmes, SURE (employment support, €100 billion) and Next Generation EU (economic recovery, €750 billion), the European Union will expand considerably its role as an issuer in the sovereign debt markets. Political agreement on these programmes earlier this year has raised hopes that at long last a common euro-denominated safe asset – backed byRead More »