advertentieThe European Commission plans to issue up to €70 billion of EU-Bonds in the second half of 2025. This issuance follows the €86 billion raised earlier this year, aligning with the total issuance goal of around €160 billion for 2025.
The funds will support NextGenerationEU and various policy programs, including the Ukraine Facility, the Reform and Growth Facility for the Western Balkans, and Macro Financial Assistance loans.
Consistent with its established funding strategy, the Commission will conduct these issuances under a unified approach, utilizing semi-annual funding plans to outline target volumes based on financing needs.
The Commission will also continue issuing NextGenerationEU Green Bonds to finance the green aspects of the Recovery and Resilience Facility (RRF), having already raised €75 billion through these bonds.
Future NextGenerationEU Green Bond issuances will rely on Member States notifying and validating additional climate-related expenditures as per the Green Bond Framework.
Background
The Commission borrows on international capital markets on behalf of the EU, distributing funds to Member States and third countries through various programs. EU borrowing is backed by the EU budget, with contributions legally mandated by all Member States under EU Treaties.
Since mid-2021, the Commission has disbursed over €304 billion in grants and loans to EU Member States through the Recovery and Resilience Facility, with €74 billion allocated to other programs benefiting from NextGenerationEU funding. Additionally, over €16 billion has been allocated to Ukraine through the Ukraine Facility since its inception, aimed at financing up to €33 billion in loans to Ukraine from 2024 to 2027, complementing €18 billion in support via Macro-financial Assistance+ in 2023.
Recently, €7 billion has been allocated to Ukraine under a new €18 billion EU exceptional Macro Financial assistance loan, to be repaid using immobilized Russian State assets as part of the G7-led Extraordinary Revenue Acceleration (ERA) loans initiative.
By the end of May 2025, EU Member States approved the Security Action for Europe (SAFE) instrument, which mandates the EU to raise an additional €150 billion through capital markets by the end of 2030 to finance defense-related capabilities for Member States. Funding for SAFE loans is expected to commence in 2026, contingent on Member State plans and loan agreements.
To maintain favorable access to capital markets, the Commission is continuously refining its borrowing operations.
Since January 2023, the Commission has transitioned to issuing single branded EU-Bonds instead of separate bonds for individual programs, structured in semi-annual funding plans and announced issuance windows.
To enhance liquidity in the secondary market for EU-Bonds, the Commission introduced a framework in November 2023 that encourages EU Primary Dealers to quote EU securities on electronic platforms and a repurchase facility in early autumn 2024.
Building on the improved auction process for EU-Bonds and Bills, particularly with the introduction of 3-leg auctions in early 2025, the Commission plans to implement non-competitive auction allocations to boost participation from EU Primary Dealers and investors placing orders through them.
In addition to EU-Bonds issuance, the Commission also engages in short-term liquidity management to address funding needs.
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