Mersch: no political appetite for ‘European safe bonds’
Proposal for pooled, tranched bonds “interesting”, but public likely to be suspicious
Europe is not politically ready for "European safe bonds" which would bundle together the sovereign debt instruments of different eurozone countries, Yves Mersch said today (February 10).
Mersch, a member of the European Central Bank's (ECB) executive board, told an audience in Alveslohe, Germany, that "from a purely academic perspective", European safe bonds – or ESBies – were "certainly an interesting idea".
He referred to a paper by Markus Brunnermeier et al, published in September 2016 by
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