Trump ha creato la possibilità per l’euro di competere con il dollaro

Martin Sandbu argues that the moment is now for the Euro to step up its role in the global financial system. What is missing is the Euro equivalent to the US Treasury bond.

> If ever the time was ripe for a “Hamiltonian moment”, in which Eurozone countries issued a large and permanent stock of common debt to gradually replace the fragmented landscape of national sovereign bonds, this is it. Global investors would lap up a large-scale and liquid Eurozone safe asset.

> The politics for this, needless to say, are not in place. But simpler steps could be taken in short order to exploit US errors as a European opportunity. First, put off the scheduled paying down of pan-EU debt taken out to bankroll the post-pandemic “Next Generation EU” fund. This debt stock, meant to decline over the 30 years to 2058, should be rolled over indefinitely instead.

> Second, consolidate the various stocks of debt already issued with the joint backing of EU member states. A single issuer and set of bonds could over time replace the jigsaw of national bonds, as well as cover all new ones, such as those for the mooted pooling of €150bn in defence spending.

> Third, the EU could pre-fund future spending. Over the next two years, member states will negotiate a seven-year budget of well over €1tn. Borrowing ahead of time could be calibrated to maintain a stable, large total EU debt stock.