EU debt has become a noticeable feature of Europe’s fiscal architecture. However, EU fiscal rules focus solely on national public finances. They have a blind spot for EU debt, which calls their goal of fiscal sustainability into question. This column proposes a simple way to bridge this gap. Under our proposal, additional EU borrowing would be matched by a corresponding reduction in national borrowing. The mechanism would make the fiscal burden of EU debt visible in national statistics without reopening the recently reformed rules. It could also strengthen the safe-asset properties of EU bonds […]