An ECB Governing Council member and Cyprus central bank governor said on Sunday
Europe should drop long-standing political resistance to joint debt issuance and
create a large-scale common “safe asset” to strengthen EU sovereignty and
stability. He argued the rare synchronicity of economic, geopolitical and
institutional conditions strengthens the case for pooled bonds. A common
instrument, he said, could lower borrowing costs, reduce market fragmentation
and finance large-scale green, digital and AI investments, defence,
public-health preparedness and energy-security projects. He acknowledged Germany
and the Netherlands’ historical opposition over contingent taxpayer liability,
and said the ECB is increasingly pushing the policy shift.
