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Regulatory Treatment of Sovereign Exposures and Safe Assets Academy

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  • General description

    Euro area governments have committed to break the doom loop between bank risk and sovereign risk. But policymakers disagree on how to treat sovereign exposures in bank regulation and whether and how to design a common safe asset. The objective of this course is to review the economics underpinning these contentious policy debates.

    This course will begin by recounting the history of the euro area sovereign debt crisis and reviewing theories that account for the role of the banking sector. Attention will then turn to recent trends in banks’ holdings of sovereign debt securities in view of current regulation. Through this lens, we will provide a framework for evaluating ideas to reform regulation, both in terms of prudential treatment and a possible common safe asset.

  • Topics covered

    • Theory and empirics of the bank-sovereign nexus (‘doom loop’)
    • Current regulatory treatment of sovereign exposures for banks and insurers
    • Ideas for reforming regulation with and without a common safe asset
    • Categorizing and evaluating common safe asset designs
    • Policy outlook: which path towards breaking the doom loop?

  • Meet the instructors

    Per Callesen is Governor of the National Bank of Denmark. Previously, he was Executive director at the IMF from 2010 to 2011 and served as Deputy Permanent Secretary at the Danish Ministry of Finance from 1993 to 2010. He holds a degree in economics from the University of Copenhagen.

    Gabriele Giudice works at the European Commission since 1994. Currently, he heads the unit working on EMU Deepening and the Macroeconomy of the Euro Area in DG ECFIN. Previously, he was assigned to the financial assistance programmes for Greece (2012-16, as EU Deputy Mission Chief) and Latvia (2009-12, as EU Mission Chief), while heading the units carrying out the surveillance of Member States (Greece, UK, Sweden, the Baltic countries). He also led the unit in charge of the business-cycle analysis of EU economies (2008-09). He was member of the Private Office (Cabinet) of Commissioner Joaquín Almunia (2004-08), where he followed economic, budgetary and monetary issues in the EU and the euro area. He has worked in ECFIN in other areas such as the design and implementation of the Stability and Growth Pact, economic policy coordination and policy analysis. He was educated as an international economist at Bocconi University, Milan and at the Institute for International Policy Studies, Milan. His publications cover EU budgetary coordination and surveillance, EMU reform, and economic and budgetary developments and reforms in Latvia, the UK and Greece. Since 2016 he is editor of the Quarterly Review of the Euro Area.

    Sam Langfield is a PhD student at the Massachusetts Institute of Technology. He is on leave from the European Central Bank, where he was (Principal) Economist from 2012 to 2019, serving the European Systemic Risk Board’s Advisory Scientific Committee and High-Level Task Force on Safe Assets. He holds a degree in economics from the University of Oxford.

    Álvaro Leandro is the Euro Area Economist at CaixaBank. He was previously a Junior Fellow at the Peterson Institute for International Economics, where he worked with Senior Fellow Jeromin Zettelmeyer on macroeconomic issues, notably on completing the Economic and Monetary Union. Before this, he was a Research Assistant at Bruegel, the Brussels-based think tank. Leandro earned his bachelor’s degree in economics from the University of Sussex in the United Kingdom and his master’s degree in economic analysis from the Universitat Pompeu Fabra in Spain.

    Marco Pagano is Professor of Finance at the University of Naples Federico II, where he directs the Centre for Studies in Economics and Finance (CSEF). He is also a fellow at the Einaudi Institute for Economics and Finance (EIEF), and previously served as its inaugural president from 2008 to 2019. He holds a PhD in economics from the Massachusetts Institute of Technology and a first degree in economics from the University of Cambridge.

  • Prerequisites

    An advanced degree in economics, finance, or a related subjects is required to attend the course. Background knowledge of the euro area financial architecture is helpful, but not required.

  • Fees

    1750€ – Public Authorities (e.g. National Competent Authorities, Central Banks and European Institutions).

    1900€ – Private Sector.

    950€ – Academics (Full-time Professors, full-time PhD Students and full-time Research Associates). Please submit a certificate attesting your status of Professor, PhD Student or Research Associate to fbf@eui.eu before registering. FBF secretariat will provide you with a code to register. *Seats for academics are limited and assigned by the FBF secretariat on a case-by-case basis.

    The course fee covers coffee and lunch breaks. Travel and hotel costs are not included.

    Please note that the payment must be settled two weeks before the start of the course.


    A few scholarships are available to outstanding candidates applying from low-income and lower-middle-income economies in the Americas, Africa and Asia, as set by the World Bank. Scholarships are available also from participants applying from the Middle East and North Africa region.

    Scholarships cover the whole course fee and 3 nights’ accomodation in Florence.

    The deadline for scholarship applications is TBC Autumn 2020. To apply for a scholarship, send your CV and a cover letter to the course secretariat at fbf@eui.eu.


    • In case a course is cancelled, registered participants will receive the full refund.
    • In case a course is moved to another date, registered participants have the following three options: request a voucher to attend another FBF course, transfer their registration to a colleague or request a refund.
    • Registered participants who have not yet paid the registration fee can cancel their participation until four weeks before the start of the course.

    For more details, please contact fbf@eui.eu
  • Practical information

    A certificate of attendance will be provided to all participants after the course.


    Please notice that the course dinner, and most of the social activities, will take place downtown.

    Recommended hotels in downtown Florence:

    Recommended hotels nearby the EUI:

    Suggested restaurants in Florence city centre


    On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.

    Privacy Notice

    The personal information you have provided will be processed in compliance with the EUI Privacy Statement for conferences. For general queries: fbf@eui.eu


    General information on local transport

    From Florence airport:

    Florence airport is located 8 km from the city centre, approximately 30 minutes by taxi or bus. Taxis can be found outside the arrivals terminal; no reservation is needed. A taxi ride from the airport costs about €20 and takes approximately 25/30 minutes.

    A tramway (line T2) connects the airport to the city centre. Trains leave from the airport terminal and take 20 minutes to the main railway station. One-way tickets can be bought from vending machines for €1.50.

    The airport is also connected to the main railway station in Florence by a shuttle bus (‘Vola in bus’) that leaves every 30 minutes (on the hour and on the half-hour) and takes 25 minutes. Tickets are available on board for €6.00.

    From the central railway station:

    Take bus n. 7 at the bus stop Stazione Nazionale in the direction “Fiesole Piazza Mino”, get off at the stop ‘San Domenico 01’. For bus routes and timetables consult the official timetable.

    Bus tickets are sold outside the railway station, at ATAF ticket kiosks and vending machines, tobacconists (tabacchi), newspaper kiosks (edicole), and most cafès (bar). Bus tickets can be purchased also on board with a contactless credit card (Mastercard, Maestro, Visa and V PAY).

    Private car

    From the A1 Milano-Napoli (Autostrada del Sole), take the Firenze Sud exit and follow directions to the city centre/Stadio. Follow the directions to the stadium (Stadio), then for Fiesole. San Domenico is on the main road to Fiesole.

    The EUI has several free parking areas available all over the Campus.