Capital flows are shifting to Europe and European debt is emerging as a transitory safe asset. Global capital is increasingly flowing toward euro-denominated debt as the safe-asset status of US Treasuries erodes. Backed by structural strengths, ample balance-sheet capacity and superior liquidity firepower (EUR2trn excess liquidity vs USD300bn). The euro has a renewed opportunity to expand its global role amid rising European investment needs and demand for USD alternatives. This requires scaling up safe collateral by at least EUR1-3trn by 2035. Strategic Eurobonds covering common funding needs in defense, climate change and infrastructure are the best solution […]