Building the best safe asset

In this episode of the Sound of Economics, host Rebecca Christie sits down with Bruegel Director Jeromin Zettelmeyer, researcher Silvia Merler and Bank of France Deputy Governor Agnès Bénassy-Quéré to talk about common European debt and the idea of a 'safe asset'. What makes government bonds a part of public infrastructure as well as a tool for financing public goods? Why is how to borrow money for public goods treated as a separate question from how to spend it? Should the European Union sell more common debt or look at a layered system that works with national borrowers, such as the swap proposal put forward by Olivier Blanchard and Angel Ubide? Will United States Treasury bonds always be the world’s only major reference asset, or will the EU get a seat at that table? This episode discusses what a safe asset is, why it matters to Europe and what steps policymakers should take next.Related research: Lappe, M.S and J. Zettelmeyer (2026) ‘A sober look at the case for common European Union debt,’ Working Paper 20/2026, Bruegel Bénassy-Quéré, A. (2025) 'Looking for a “fair” international monetary system,' VoxEU Column, 16 April, CEPR Merler, S. (2025) 'More EU debt issuance would be the best response to Trump’s tariffs,' First Glance, Bruegel Christie, R. (2022) 'If it doesn’t trade, is it really marketable debt?,' Blog Post, Bruegel Christie, R. (2025) 'Unlocking the Own Resources Debate – Debt and Competitiveness,' Testimony, Bruegel