As I said before, we also need them in Europe, and as soon as possible. Regarding the second objective, we also have to revert to regulation. We have to adapt regulatory requirements in order to protect banks from government finances running into difficulties. If we are looking to offer banks greater protection against distressed public finances, it is government bonds we must target.
From the perspective of regulation, there are two factors which play a role here. The first factor concerns banks’ capital. Under the current regime, banks do not need to hold capital against the risks of loans to sovereigns – unlike other loans. This regime is based on the assumption that loans to governments are risk-free because states cannot default.