EU Borrowing for Recovery

European Commission issuances to reach up to € 65 billion in second half of 2024

Green bond issuance featured prominently in the European Commission’s H1 2024 funding programme, with a more than €11 billion issued via NGEU Green Bonds over the semester, bringing the total amount of NGEU Green Bonds to €60 billion.

Since 2020, EU Bond issuances have mobilized more than €480 billion for key EU priorities and demands will remain high in the foreseeable future. The development of the EU debt capacity infrastructure and of the liquidity of EU Bonds in the secondary market remains a Commission priority. Work is also advancing on the introduction of a repo facility early in the autumn, with more details to come in our next quarterly update.

With EU-Bonds expected to reach €1 trillion by 2026, or a 60-70% weight in the SSA indices, and with the specific, budget-base financial structure of the EU, a number of index providers have started to consult stakeholders on the possible reclassification of the EU in their sovereign indices.

In Q2 2024 the EU reached its funding target for H1 2024, raising thanks to its reliable investor base €74 billion through EU-Bonds.

On 5th and 6th June, the annual the Capital Markets Seminar organised jointly by the European Commission, the European Investment Bank and the European Stability Mechanism took place in Luxembourg.