| Author (Person) | Mack, Sebastian |
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| Publisher | Hertie School: Jacques Delors Centre |
| Series Title | Jacques Delors Centre: Policy Papers |
| Publication Date | August 2021 |
| Content Type | Research Paper |
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Summary: The bonds financing the European Union’s recovery remain short of being the much-hoped-for safe asset of EU monetary union (EMU). However, with the right reforms they could well turn out to be just that. To earn safe asset status, the volume of EU debt should increase, EU borrowing made permanent, and the ECB treat supranational EU bonds in a more favourable manner. The flaws associated with failing to be a eurozone-only instrument are offset by remarkable fiscal and democratic benefits. So, if the NextGenerationEU (NGEU) pilot project – limited in time and tailored specifically to fighting the coronavirus pandemic – turns out to be to everybody’s benefit, then member states should seize the opportunity and extend it before debt is repaid as of 2028. |
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| Source Link |
Link to Main Source
https://www.delorscentre.eu/en/publications/detail/publication/safe-asset
Alternative sources
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| Subject Categories | Economic and Financial Affairs |
| Subject Tags | Economic and Monetary Union [EMU], Economic Governance | Situation |
| International Organisations | European Union [EU] |
