Furthermore, the creation of a European safe asset could help in weakening the bank-sovereign doom loop. Banks could hold the safe asset instead of domestic government debt. Any flight to safety in a crisis would take place between the safe asset and a more junior tranche – rather than between the bonds issued by different Member States.
I would like to thank the Honourable Prime Minister for gracing us with his presence, which underscores the importance that the Government places on Small and Medium-sized Enterprises (SME) development.