A high-level discussion on European financial stability, integration, and strategic autonomy

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.[…]