New Atlanticist
May 18, 2020
Partial Eurobond not the answer to Europe’s coronavirus economic downturn
By
Bart Oosterveld
Some have argued that a partial Eurobond instrument, backed for example by France, Italy, and Spain, could be set up as a risk sharing and/or solidarity tool to partially finance the recovery out of the economic downturn caused by the pandemic. This is a truly awful idea as such an instrument would deliver none of the potential benefits of a Eurobond, while simultaneously creating asymmetric risks on capital markets.