When it comes to considering the environmental, social and good-governance impacts of various investments, government debt is not usually at the top of investors’ minds. But as politicians have occasionally grumbled, the so-called Bond Vigilantes can have plenty of influence over policy. What if they used it for social good — and how would they define that?

As we head into 2021, Europe’s sovereign debt markets offer an interesting case in point. The recessions and social unrest sparked by Covid-19 could very well put fresh pressure on the structure of European monetary union, in a very similar way to how the post-2008 recessions led to the eurozone crisis a decade ago.