The introduction of a joint “eurobond” that would entirely replace national issuance by individual members of the single currency area could offer the best solution for policymakers seeking a more stable sovereign debt market, according to a study by the European Commission.

The analysis, obtained by the Financial Times ahead of its publication on Wednesday, argues that the creation of commonly backed “stability bonds” would ensure all eurozone members could meet their financing needs and create a vast market that could compete with US treasuries as a global benchmark.

“This approach would be most effective in delivering the benefits of stability bond issuance,” the report says. “The full substitution of stability bond issuance for national issuance would assure full refinancing for all member states irrespective of the condition of their national public finances.”