The European Commission has announced its intention to issue up to €90 billion of EU-Bonds in the first half of 2026, bringing outstanding EU-Bonds close to €800 billion by the end of June 2026.
The proceeds will be used to fund loans to EU Member States under the NextGenerationEU programme as well as loans to support the procurement of defence related capabilities under the new Security Action for Europe (SAFE) instrument. Other policy programmes such as the Ukraine Facility, the Reform and Growth Facility for the Western Balkans and Macro Financial Assistance loans to neighbouring countries will also be financed by EU borrowing.
The Commission will carry out all issuance under its now well-established unified funding approach , using a mix of long term and short-term instruments, with semi-annual funding plans to communicate target issuance volumes based on evolving financing needs. This approach enables the Commission to finance funding needs under existing programmes and includes the flexibility to respond to additional needs. Subject to Member States’ notification and validation of climate-relevant expenditures in line with the NextGenerationEU Green Bond Framework, the Commission will also continue to issue NextGenerationEU Green Bonds to finance the green component of the Recovery and Resilience Facility (RRF).
To date, €78 billion have been raised through issuance of NextGenerationEU Green Bonds.
Background
The Commission borrows on international capital markets on behalf of the EU and disburses the funds to Member States and third countries under various borrowing programmes. EU borrowing is guaranteed by the EU budget, and contributions to the EU budget are an unconditional legal obligation of all Member States under the EU Treaties.
On the basis of EU-Bonds and NextGenerationEU Green Bonds issued since mid-2021, the Commission has so far disbursed over €362 billion in grants and loans to the EU Member States under the Recovery and Resilience Facility. Up to €76 billion have been allocated to other EU programmes benefitting from NextGenerationEU funding.