The idea of a “safe asset" for the euro area, engineered by pooling and tranching sovereign bonds, is not new. Driven by the hope of re-arranging, and thereby strengthening, the current system of sovereign bond markets, there is a significant number of voices that support this idea and publicly advocate for it. Those who support the safe asset concept for the euro area also argue that higher investments and economic growth could be triggered. Other stakeholders, by contrast, state that neither the political reality, nor the current market conditions are right to proceed with the development of a safe asset. Furthermore, many questions in the debate are still unanswered: who should issue a safe asset? Which rating would it get? Regarding the stabilisation of the bond markets, would it necessarily be more successful than an increased diversification of sovereign risks on balance sheets? We are pleased that Daniel Gros, Director at CEPS, will follow our invitation to shed some light on this debate at ESBG Spotlight event on 24 June.
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Founded in Brussels in 1983, CEPS is a leading think tank and forum for debate on EU affairs, ranking among the top ten non-US think tanks. With a strong in-house research capacity and an extensive network of partner institutes throughout the world, CEPS has demonstrated its ability to anticipate trends and to analyse policy questions well before they become topics of general discussion. At CEPS, researchers perform policy research on a wide range of policy areas: from the economy and finance to better regulation, the digital economy and trade, as well as energy and climate, education and innovation, foreign policy and the European integration process, or justice and home affairs.