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Policy Brief

The Blue Bond Proposal

This Policy Brief proposes a Blue Bond to resolve high debt levels in vulnerable states.

By: and Date: May 5, 2010 European Macroeconomics & Governance Tags & Topics

Soaring debt levels and the crisis in Greece has sharpened the focus on fiscal sustainability among eurozone members.

The European Union has to tackle high debt levels in vulnerable states which are compounded by a hike in risk premiums on government bonds leading to a debt trap, while designing ways to efficiently finance debt.

Furthermore, European solidarity with weaker states should not undermine incentives for individual members to pursue fiscally sustainable policies.

This Policy Brief proposes a Blue Bond to resolve these challenges.

The authors, Bruegel Non-resident Fellow Jakob von Weizsäcker and Jacques Delpla from Conseil d’Analyse Économique, Paris, explain the economics behind their proposal, its institutional underpinnings and the implication of it on various participating countries.

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Upcoming Event

Apr
5
09:30

Micro- and macro-based methods in assessing the impact of investment

This workshop will discuss methods for accurately evaluating the performance of public and private investment initiatives.

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Apr
6
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On 6 April Bruegel, as in previous years, will host the presentation of the Euro Yearbook, a collection of experts’ insights on the construction of the European Monetary Union through 2016.

Speakers: Pablo Zalba Bidegain, Maria Demertzis, Fernando Fernandez, Javier Méndez Llera, Karl Pichelmann and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
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Past Event

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By: Grégory Claeys Topic: European Macroeconomics & Governance Date: March 10, 2017
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