The Economics Show Could common debt make the EU stronger? With Carlos Cuerpo
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Feb 27, 2026 Carlos Cuerpo, Spain’s economy, trade and business minister since 2023, sketches a plan for a European safe asset to lower financing costs and attract investment. He explains mechanics like stock-and-flow conversions, scaling issuance targets, and links joint debt to geoeconomic strategy. Spain’s recent rebound, green investments and industrial policy are used as practical reference points.
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Common EU Safe Asset Would Lower Borrowing Costs
- A European safe asset would give the euro the anchor it lacks and cut financing costs across sovereigns and corporates.
- Carlos Cuerpo argues swapping/issuing euro-denominated Commission debt at scale creates liquidity and a euro yield curve benefiting exporters and firms.
Euro Gives Costs Without Safe Haven Benefits
- The euro currently delivers currency strength without safe-haven financing benefits, harming export competitiveness.
- Cuerpo calculates potential annual interest savings for big euro issuers near €50bn if yields aligned with German levels via a safe asset anchor.
Scale The Safe Asset Gently Through Debt Swaps
- Build the safe asset by converting maturing national debt and issuing a share of allowed fiscal flows through the Commission.
- Cuerpo suggests swapping existing debt as it matures and annually issuing a portion of deficit-linked national debt to gently scale supply.