As the issuance of Stability Bonds may weaken market discipline, substantial changes in the framework for economic governance in the euro area would be required. Additional safeguards to assure sustainable public finances would be warranted. These safeguards would need to focus not only on budgetary discipline but also on economic competitiveness (see Section 3). While the adoption of the new economic governance package already provides a significant safeguard to be further reinforced by new regulations based on Article 1369 , there may be a need to go still further in the context of Stability Bonds – notably if a pooling of.
