NextGenerationEU diversified funding strategy in a nutshell

To raise up to around €800 billion (in current prices) for the NextGenerationEU, the Commission will use a diversified funding strategy.

A diversified funding strategy combines the use of different funding instruments and funding techniques with an open and transparent communication to the market participants.

This approach will be in line with the best practice of big issuers. It will enable the Commission to raise the needed volumes in a smooth and efficient way. This will attract investors to Europe and strengthen the international role of the euro.

The Commission’s diversified funding strategy would combine:

  • Annual borrowing decision; Funding plan key parameters communicated biannually, to offer transparency and predictability to investors and other stakeholders;
  • Structured and transparent relationships with banks supporting the issuance programme (via a Primary Dealer Network);
  • Multiple funding instruments (medium and long-term bonds, some of which will be issued as NextGenerationEU green bonds, and EU-Bills) to maintain flexibility in terms of market access and to manage liquidity needs and the maturity profile;
  • A combination of auctions and syndications, to ensure cost efficient access to the necessary funding on advantageous terms.

The borrowing operations will be encoded in a robust governance framework, which will ensure coherent and consistent execution.

In its work, the Commission will continue to coordinate with other issuers, including the EU Member States and supranational.

An overview of the Commission’s diversified funding strategy is available in the relevant communication and in this factsheet.

Funding plans

In line with established market practice and to offer transparency and predictability to investors and other stakeholders, the Commission will be publishing on a regular basis:

  • Annual borrowing decision
  • Semi-annual funding plans

Read more about the annual borrowing decision and funding plans

Primary Dealer Network

The Primary Dealer Network will reinforce the Commission capacity and ensure transparency relations with banks that support the placement of the EU borrowing.

Read more about the Primary Dealer Network

Funding instruments

To be able to place the full size of NextGenerationEU under optimal conditions, the Commission will use bonds with varying maturities as well as short-term debt instruments – EU-Bills.

Read more about the funding instruments

Auctions and syndications

The use of a variety of funding techniques will enable the Commission to attract the necessary funding, even under difficult market conditions, enlarge the investor base and reduce funding costs.

To achieve this, the Commission will combine syndications and auctions:

  • Syndication
    For syndicated transactions, the Commission works with a group of underwriters, usually banks whose role is to place the debt with investors. Syndications are the traditional technique for debt issuance by supranational issuers. The Commission has used syndication exclusively in the past and will continue to rely on it for a substantial part of the future NextGenerationEU and other bond issuances.

  • Auctions
    To ensure greater cost-efficiency, the Commission will add auctions to its toolbox. Auctions are the favoured preferred issuance technique of large sovereigns like Germany and France (used for more than 90% of their volumes). Auctions will be conducted by a best-in class auction platform to ensure a good execution of these new funding operations. The Commission will use the auction format to issue all of its EU-Bills as well as some of its longer-term bonds

The Commission will apply a progressive approach in order to ensure the optimal balance between syndications and auctions over time, taking into account market participants’ reactions.

The Commission has decided to use the auction system TELSAT by Banque de France to carry out its auction operations.


All documents linked to the EU funding strategy for NextGenerationEU are available in the documents' section of our website.