EU Budget 2022: Jobs, jobs, jobs for a strong recovery

The Commission (14 April) launched its borrowing strategy to raise €800 billion for the temporary recovery instrument NextGenerationEU. The funds will focus on green and digital financing. It will operate in a similar way to a sovereign wealth fund and will keep borrowing costs low for EU member states. 

‘NextGenerationEU is a game-changer for European capital markets’

The fund is likely to attract investors to Europe and strengthen the international role of the euro. 

Johannes Hahn, Commissioner in charge of Budget and Administration, said: “NextGenerationEU is a game-changer for European capital markets. The funding strategy will operationalize the NextGenerationEU borrowing, so we will have all necessary tools in place to kick-start the social and economic recovery and promote our green, digital and resilient growth. The message is clear: as soon as the Commission has been legally enabled to borrow, we are ready to get going!”

Borrowing to finance the recovery

NextGenerationEU – at the heart of the EU’s response to the coronavirus pandemic – will be funded by borrowing on the capital markets. We will raise up to around €800 billion between now and end-2026. All borrowing will be repaid by 2058.

Diversified funding strategy: a snapshot

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

The diversified funding strategy will help the Commission to achieve two main objectives: address the large funding needs of NextGenerationEU and obtain the desired low cost and low execution risk in the interest of all Member States and their citizens.