On the 13th of September, the European Commission issued €12 billion in a dual tranche transaction under its flagship NextGenerationEU programme. It consisted of a new 5-year bond of €7 billion due on 4 October 2027 and a new 30-year bond of €5 billion due on 4 October 2052.
What is the NextGenerationEU?
NextGenerationEU is a temporary recovery instrument of more than €800 billion in current prices to support Europe’s recovery from the coronavirus pandemic and help build a greener, more digital and more resilient Europe. To finance NextGenerationEU, the Commission – on behalf of the EU – is raising from the capital markets up to around €800 billion between now and end-2026. In parallel to NextGenerationEU, the Commission runs several back-to-back funding programmes to finance the specific needs of the EU Member States and third countries. This includes the macro-financial assistance programme, under which the Commission has provided support of €2.2 billion to Ukraine since the beginning of the year, and has proposed a further €5.0 billion support, the second tranche of an up to €9.0 billion package.
With the transaction, the Commission has issued a total of €73.75 billion in long-term funding under NextGenerationEU in 2022 and €144.75 billion since the start of the programme in June 2021. Of the total, €23.75 billion have been issued since July 2022 in line with the execution of the Commission’s funding plan for the period between July and December 2022 as presented at the end of June 2022.On the basis of the funds raised, the Commission has so far paid out over €110 billion under the Recovery and Resilience Facility and over €15 billion under other EU programmes which benefit from NextGenerationEU financing. The Commission will continue using the funds raised to support Europe’s post-pandemic recovery, financing Member States under the Recovery and Resilience Facility as well as via other EU programmes.
You can find more details at the Commission’s website.
To learn more about current calls for proposals or Eurodiaconia’s funding events, please don’t hesitate to get in touch with our Projects and EU Funding Officer Giorgia Signoretto at email@example.com.