Safe euro dating
This work has been ongoing for some years and the details were first outlined in the EMU deepening Reflection Paper.With this in mind, we sat down with our Group Chief economist, Helge J.It would serve as useful instrument comparable to US and Japanese bond instrument that enjoy the safe-haven status.As an economist I take an particular interest in the broader macroeconomic effects from a potential introduction of a euro safe asset and try to assess if this could be an opportunity for higher investments and economic growth.
The sovereign bond markets in Europe set the financial conditions for businesses and households across the euro area.
The euro area will remain vulnerable to external shocks unless the European policymakers try harder to ensure their sovereign bonds get the true recognition as safe-haven assets.
With this mind, the European Commission gathered industry experts to discuss how a European Safe Asset can be introduced as a new financial instrument for the common issuance of debt.
Germany’s government bonds are considered a safe-haven and, since 2010, Germany has enjoyed several inflows that has reduced government borrowing costs.
It is safe to say that the safe asset of Europe, is considered to be the German 10-year bond.