The European Central Bank (ECB) is calling for a permanent joint borrowing arrangement in the form of Eurobonds. According to a letter written to EU leaders for the competition‑policy review this Thursday-as reported by “Handelsblatt”-the ECB wants the EU Commission and member states to issue a “Safe Asset”: a highly secure type of bond that would help improve the supply of high‑quality collateral while preserving sufficient incentives for prudent fiscal policy.
This demand is part of a broader “checklist” of sweeping reform proposals presented by the ECB. The confidential catalogue, titled “Time to Act” also pushes for an EU‑wide deposit insurance scheme and a savings‑and‑investment account with a strong focus on retirement for all EU citizens.
