Looking at financing in the European bond market, two groups of debtors account for the large majority of the outstanding stock of debt securities, namely public sector and financial institutions. The amount of outstanding public sector bonds in the euro area is more than 3 trillion euros, somewhat less than 60% of euro area GDP.
While that amount provides the market with depth and liquidity, you will not be surprised to hear that I would like to see this ratio to GDP coming down. The amount of public debt in the euro area is still too high.