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Speaking after the Ecofin Council, Dombrovskis said that work has been going on “for some time” on the concept of European Safe Assets at the European Systemic Risk Board (ESRB). As part of the board, the Commission has been involved in the project. The vice-president explained that the concept is about the securitisation of EU member states’ sovereign bonds. “We find this concept useful since it helps to address the issue of banks sovereign loops,” Dombrovskis told reporters. By creating European Safe Assets, we provide investment opportunities for banks and for others, and we ensure that, especially banks, are not so concentrated on their own sovereign bonds,” he added.
Dombrovskis did not confirm whether the European Safe Assets would be part of the white paper that will outline the vision for the future of Europe on the occasion of the 60th anniversary of the Treaty of Rome in March. The securitisation of EU sovereign debt was criticised by Germany, a long-standing opponent of any mutualisation of risk between eurozone members.
Remarks by Vice-President Dombrovskis at the ECOFIN Council press conference