The Critical Juncture for Europe’s Sovereign Debt Architecture

The Critical Juncture for Europe’s Sovereign Debt Architecture

The recent International Monetary Fund Article IV consultation and Financial Sector Assessment Program (FSAP) for the euro area (EA) have cast into sharp relief the region’s pressing vulnerabilities and institutional limitations. As the global macrofinancial environment enters a more uncertain and multipolar era, the EA finds itself in a now-or-never moment. A decisive pivot toward creating a large-scale, liquid and credible euro-denominated saf…