The European Systemic Risk Board published a welcome address by First Vice-Chair Olli Rehn at an ESRB joint workshop on “A European safe asset and financial stability”, arguing that a European safe asset has moved from a niche crisis-era idea to a strategic necessity amid heightened geopolitical uncertainty and market stress dynamics. Rehn set out three drivers: the need for stable, efficient and scalable financing for large investments in European public goods such as defence and the green transition, especially given limited fiscal space in highly indebted Member States; the role of a deep and liquid benchmark asset in reinforcing the international role of the euro; and the importance of “market plumbing” in stress, with a safe asset expected to remain liquid and serve as core collateral for repo and derivatives markets, supporting financial stability and monetary policy transmission. He pointed to the European Central Bank’s decision to enhance the Eurosystem repo facility for foreign central banks (EUREP 2.0), which will offer broader standing access to euro liquidity against high-quality collateral for interested and qualifying foreign central banks from the third quarter of 2026.
European Systemic Risk Board 2026-04-22
European Systemic Risk Board’s Olli Rehn urges action on a European safe asset and flags EUREP 2.0 euro liquidity access from Q3 2026
The European Systemic Risk Board published a welcome address by First Vice-Chair Olli Rehn arguing that a European safe asset has become a strategic necessity for financial stability amid heightened geopolitical uncertainty and market stress. Rehn highlighted the need for scalable financing of European public goods, a deep and liquid euro benchmark asset, and robust “market plumbing” in stress, and noted the European Central Bank’s decision to enhance the Eurosystem repo facility for foreign central banks from the third quarter of 2026.