The key conclusions of the expert groups set up by European Commission to report on a debt redemption fund and eurobills yesterday presented its key conclusions. The report was broadly positive, saying they would stabilise government debt markets, support monetary transmission mechanisms, and strengthen financial stability and financial integration. But the report also warned of offsetting economic risks and moral hazard, though it said this would critically depend on how such a scheme is structured. The group also raised a number of legal concerns. Without treaty change, a debt redemption fund would be a purely inter-governmental construction, and this would raise issues of democratic accountability. To set up joint issuance and joint and several liability, a treaty change would be necessary. The report remains overall neutral on the desirability of the scheme.