Citadel's Angel Ubide: 'Now or Never' for Eurobonds to Boost European Financial Power

The Urgency for Eurobonds

• ⚡ Angel Ubide argues that it's a "now or never" moment for Europe to create joint 'Eurobonds' to deepen its bond market and enhance financial power.
• 🌍 This is driven by geopolitical shifts, competition for influence among the US, China, and Europe, and the need for Europe to increase its military and financial strength.
• 💡 A safe asset, akin to US Treasuries, is crucial for Europe's strategic autonomy and economic power.

Enhancing the Euro's International Role

• 🇪🇺 The ECB is now actively promoting the international role of the euro, a shift from its previous ambiguous stance.
• 💰 A true international currency like the dollar requires a safe asset for global investors, which Eurobonds could provide.
• 📈 The EU is set to become the largest issuer in Europe next year, indicating the existing framework for EU bonds.

Economic and Political Imperatives

• 🤝 The argument for Eurobonds is both economic and political, aiming to increase investment, boost the single market, and defragment Europe's debt management.
• 📈 Leaders like Enria and Mario Draghi have highlighted the need to increase investment and boost the single market for stronger growth.
• 🧩 Defragmenting Europe requires defragmenting the management of debt to achieve stronger economic growth.

Addressing Moral Hazard and Economic Growth

• ⚠️ The moral hazard concern, prominent a decade ago, has diminished due to the EU's response to COVID-19 and the Next Generation EU initiative.
• 📊 The Next Generation EU, funded by Eurobonds, has stabilized the European economy, leading to record low unemployment in the Eurozone.
• 🚀 This financial stability has prevented fears of losing market access or runs on weaker countries, fostering stronger growth that benefits all member states, including Germany.