Joint European debt has long been proposed as a way to strengthen the resilience of the euro area and deepen financial integration. Supporters argue that Eurobonds could provide a genuine European safe asset, improve collective crisis responses, and enhance macroeconomic stabilisation across Member States. Despite repeated shocks, however, the idea has remained politically sensitive and institutionally constrained.

A central concern has been the risk of fiscal dominance, moral hazard, and blurred boundaries between monetary and fiscal policy. These considerations have limited support for permanent common debt beyond temporary crisis instruments. Recent developments, including common borrowing under NextGenerationEU and evolving positions within parts of the European policy community, suggest that some previously firm red lines may be shifting.

At the same time, geopolitical fragmentation, the push for European strategic autonomy, and questions surrounding reliance on the US dollar are lending renewed weight to the case for a deep and liquid euro-denominated safe asset. Against this backdrop, the debate brings together senior experts to assess whether Eurobonds are becoming economically necessary, politically feasible, and strategically urgent.

Key questions for discussion:

• Should Eurobonds be designed as a permanent feature of Economic and Monetary Union, or should they remain a crisis-specific instrument?
• Would a common European safe asset significantly improve financial stability and the transmission of monetary policy across the euro area?
• Can Eurobonds be structured in a way that avoids fiscal dominance and preserves central bank independence?
• What governance and fiscal framework would be required to make joint debt politically and economically sustainable?
• To what extent could Eurobonds strengthen the international role of the euro and support European strategic autonomy?

Speakers:

• Erik Jones | European University Institute
• Waltraud Schelkle | European University Institute
• Marco Buti | European University Institute
• Maria Demertzis | European University Institute

Moderator:

• Georgios Papakonstantinou | European University Institute

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This event is co-organised with the Florence School of Transnational Governance and the EMU Lab.