This Policy Insight discusses sovereign debt management in the euro area, where the COVID-19 crisis has caused a huge increase in such debts. Our two main conclusions are that sovereign debt externalities remain important in the euro area, even in the new environment of permanently lowered...

Following the proposal by Avgouleas and Micossi (2021) and Micossi (2021), several authors (Amato and Saraceno 2022, Baglioni and Bordignon 2022, Cottarelli and Galli 2021, D’Amico et al. 2022) have engaged in the debate on how to manage the sovereign debt portfolio accumulated by the European...