Financial representatives on Thursday (24 May) poured cold water on the European Commission’s proposal to create sovereign bond-backed securities (SBBS), insisting that not all the elements exist yet for a successful market for the product.
The European Commission has said that the zero-risk weight of its forthcoming sovereign bond-backed securities proposal will be a ‘game changer’, but member states and the financial sector remain sceptical about how the new asset could work in practice.
The European Commission backed alternative options to referendums in order to pass major changes needed to deepen the Economic and Monetary Union amid “broader questioning” about the single currency.
Germany's Finance Minister Wolfgang Schäuble said on Tuesday (23 May) that it is "unrealistic" to consider changing European treaties at this stage, calling instead for incremental steps by national governments to move EU integration forward in specific areas.
Spain's conservative government has added its voice to calls for deeper integration in the eurozone, suggesting to Brussels in a paper that members of the bloc should pool some aspects of their debt management and share a budget to fight crisis shocks.