Although the results showed a clear majority in favour of Stability Bonds, there were also significant differences in views between supporters and opponents of Stability Bonds.
The results of the public consultation following the Green Paper on Stability Bonds show a clear majority in favour of Stability Bonds, and most of them in favour of the Green Paper's Approach 2. The public consultation showed however also significant differences in views between supporters and opponents of Stability Bonds.
Two elements seem to be impacting the formation of an opinion on this topic: the country of origin of the respondent and the field of activity. Thus, market stakeholders who are seeking new stable investment opportunities on financial markets (e.g. pension funds) are clearly in favour of Stability Bonds, whereas national entities from countries likely to suffer an initial increase of financing costs tend to oppose the idea. Academic contributions were unanimously in favour of Stability Bonds. Although some variations can be observed, the positions are often backed by the same range of argument on each side. It appears that the main challenge in reassuring opponents remains how to ensure a full respect of fiscal rules and avoid moral hazard.
Despite the relatively low number of replies, the public consultation has been a useful process for further reflection about Stability Bonds. The feedback to the public consultation revealed several additional issues not addressed in the Green Paper which must be further analysed.
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