Finance

European Commission empowered by EU Treaties to borrow from the international capital markets

By Anna Ellis • 06 January 2023 • 11:39

European Commission empowered by EU Treaties to borrow from the international capital markets. Image: European Union.

This is done on behalf of the European Union.

It is a well-established name in debt securities markets, with a strong track record of successful bond issuances over the past 40 years. All EU-Bond issuances executed by the European Commission are denominated exclusively in euros.

The European Commission uses the proceeds of EU-Bond issuances to fund EU policy programmes. Landmark policy programmes currently funded by EU-Bonds include the NextGenerationEU recovery instrument of up to around €800 billion in current prices and the Commission’s Macro-Financial Assistance + programme for Ukraine.

EU borrowing is executed using multiple instruments, including EU-Bonds, EU-Bills, and NextGenerationEU Green Bonds.

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