2. European safe asset: Review of selected proposals from the perspective of a small and open economy

The Commission supports the current work of the European Systemic Risk Board on European Sovereign Bond-backed Securities and will present an enabling framework for such securities in spring 2018. This short note evaluates four widely publicized safe asset proposals. We argue that building an institutional framework is crucial for the success of a safe asset. Focusing on the conceptual and technical aspects of these proposals, this note identifies the red/blue bond proposal as the most viable option for a small and open economy such as the Slovak Republic.