MNI BRIEF: Expect Indices To Include Joint EU Debt- EU Advisor

The European Commission expects jointly issued European debt will be included in major global market indices, the European Commission's hors classe Directorate-General for Budget advisor Sigfried Ruhl said on Wednesday, accepting that it is taking longer than originally expected.

Although some index collators have for now ruled out including EU euro-denominated bonds in their indices, Ruhl believes increased issuance of joint bonds will increase investor appetite, bringing addition to indices. "At the end it's the market's decision," he told the AFME conference in Brussels, adding that index providers will include European bonds in their indices if that is what market participants demand. 

Ruhl added that the SAFE defence lending facility shows that joint borrowing is becoming a more prominent part of the European lending landscape. (see MNI INTERVIEW: EU Bond Market Needs More Issuance-ICMA's Hill )