Over the past 40 years, the Commission has used a back-to-back funding approach in its borrowing and lending operations.
Under this approach, the Commission issued bonds and transferred the proceeds directly to the beneficiary country on the same terms that it received (in terms of interest rate, maturity).
The timing, volume and maturity of bond issuances have been determined entirely by the needs of the beneficiary.
This method has successfully addressed small funding needs. It has reached its limits with the SURE programme where 19 Member States are being served by a single funding programme.
The size and complexity of the NextGenerationEU programme require the Commission to start using the issuance methods employed by large and frequent issuers. To that end, the Commission will deploy a diversified funding strategy to carry out the borrowing under NextGenerationEU.