Any discussion of European government bonds turns at some point to the advent of the euro. Countries that join in the first round in 1999 lose sovereignty over their domestic currencies and the right to print money. Secondly, their debt issuance will be restricted to 3% of their GDP.
The second requirement is unlikely to make much difference to government bond markets. Most EU member countries announce their borrowing requirements for the year in advance, and in the run-up to the single currency potential participants are keeping to the borrowing limits set out by the Maastricht treaty.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
