Italy's Euroskeptic Market Regulator Favors European Safe Asset

Paolo Savona, the euroskeptic who heads Italy’s market regulator, made a surprising admission on Friday: he supports a call by the European Central Bank to create a so-called European safe asset.

In a speech in Milan, Savona said low-risk financial instruments that investors could hold instead of sovereign bonds could significantly contribute to financial stability. They would possibly be issued by the European Stability Mechanism.