The euro could simultaneously address its two key gaps — scarce safe assets and weak geopolitical/security posture — by issuing joint 'team Europe' defense bonds: a variable-geometry coalition (possibly including the UK) issuing future-of-defense bonds to finance strategic dual-use enablers (AI, space, missile shield), achieving sovereign benchmark status and capturing convenience yield such that it could be nearly self-financing.

normativepending

Speaker

Moritz Schularick

Evidence Quote

could be tackled jointly by creating uh safe assets as European joint defense debt of we call it team Europe.

Source

The changing dollar regime: An updatePeterson Institute for International Economics
Created: 6/18/2026, 1:57:48 PM

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