On Tuesday 15 June, the European Commission raised €20 billion in ten-year bonds (maturing on 4 July 2031) to finance the Next Generation EU Recovery Plan. This first operation on the markets is the largest institutional bond issue ever carried out in Europe.
The President of the European institution, Ursula von der Leyen, described this operation as a first “key step” in raising “800 billion euros” on the markets to help revive the European economy. Demand was “seven times” higher and the transaction was “very attractively priced” since the interest rate being applied was “less than 0.1%”, she added.
EU Budget Commissioner Johannes Hahn noted the record delay in Member States ratifying the decision on own resources in relation to the EU budget, something that was a necessary step to allow the Commission to borrow on the markets on behalf of the EU.
He noted that the issuance of one third of green bonds under Next Generation EU would “double” market for these bonds.
From now until the end of 2021, the European Commission is to issue 80 billion in long-term EU bonds and several tens of billions of euros in short-term EU bills (see EUROPE 12731/21).
Five national plans on the point of being approved
Mrs von der Leyen also confirmed that the European institution had finalised its evaluation of five national recovery plans. By the end of the week, she will have travelled to Portugal, Spain, Greece, Denmark and Luxembourg to convey the findings of this evaluation to the national authorities in each country (see EUROPE 12739/7).
“It is good to have a Recovery Plan. But this is only the beginning. Now is the time to implement it!”, she said, promising that the European Commission would ensure “rigorous” monitoring of these plans in order that they comply with the EU’s policy priorities. (Original version in French by Mathieu Bion)