Published by Global Banking & Finance Review®
Posted on February 11, 2026
2 min readLast updated: February 11, 2026
Add as preferred source on GoogleChristine Lagarde urges EU leaders to adopt key reforms for resilience, focusing on joint debt issuance and digital euro development.
FRANKFURT, Feb 11 (Reuters) - European Central Bank President Christine Lagarde called on EU leaders on Wednesday to take urgent action in critical areas, including potentially divisive joint debt issuance, to make the bloc more resilient in turbulent times, a source told Reuters.
Lagarde is hoping to kickstart a timid reform process at an EU summit this week as the bloc comes under pressure from unpredictable U.S. policy and China's encroachment on its traditional export markets.
After Lagarde revealed last week that she would send EU leaders what she called a "checklist" of needed reforms, the ECB has prepared a document outlining the key tasks.
Lagarde said five areas required quick action, including establishing a savings and investment union, making the digital euro a reality, deepening the single market, fostering innovation and strengthening the bloc's core institutional framework, a source familiar with the document said.
"With coordinated and decisive collective action, Europe can unlock higher growth potential, strengthen resilience, and reinforce its policy autonomy and prosperity," the document said. "This requires lifting productivity, mobilising investment, and enhancing resilience," the ECB argued.
An ECB spokesperson declined to comment.
In a point that is likely to generate division among leaders, the ECB said Europe should create a common European, highly liquid, euro-wide benchmark safe asset that enhances the supply of high-quality collateral.
While the ECB has long argued for more joint debt issuance, some governments, particularly, Germany, have resisted these calls, making the case against debt mutualisation outside crisis times.
The ECB document also repeated its longstanding call for a joint deposit insurance scheme and a European framework for liquidity in cases of bank resolution, the source said.
The ECB also said the was a need to boost retail participation in capital markets, particularly through a savings and investment account, with a focus on pension financing.
(Reporting by Balazs Koranyi; Editing by Sharon Singleton and Toby Chopra)
The European Central Bank (ECB) is the central bank for the euro, responsible for monetary policy in the Eurozone, aiming to maintain price stability and support economic growth.
Joint debt issuance refers to the process where multiple countries or entities issue bonds collectively to raise funds, often to enhance financial stability and reduce borrowing costs.
Capital market participation involves engaging investors and institutions in the buying and selling of financial securities, such as stocks and bonds, to enhance liquidity and investment opportunities.
Economic governance refers to the frameworks and policies that guide economic decision-making and coordination among countries or regions, aiming to ensure stability and growth.
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