Publications

One-Pager No. 56 | June 2018

An Alternative to Sovereign Bond-Backed Securities for the Euro Area

The European Commission's proposal for the regulation of sovereign bond-backed securities (SBBSs) follows the release of a high-level taskforce report, sponsored by the European Systemic Risk Board, on the feasibility of an SBBS framework. The proposal and the SBBS scheme, Mario Tonveronachi argues, would fail to yield the intended results while undermining financial stability.

Tonveronachi articulates his alternative, centered on the European Central Bank's issuance of debt certificates along the maturity spectrum to create a common yield curve and corresponding absorption of a share of each eurozone country’s national debts. Alongside these financial operations, new reflationary but debt-reducing fiscal rules would be imposed.

Publication Highlight

Summary Vol. 28, No. 3
Summary Fall 2019
Author(s): Elizabeth Dunn, Michael Stephens
September 2019

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