In the first half of 2025, the European Commission will issue up to €90 billion in long-term EU Bonds in the first half of 2025. This move is part of the EU’s broader strategy to bolster economic recovery, enhance resilience, and support neighboring countries, including Egypt, as well as Ukraine and the Western Balkans.
Strengthening the EU Economy and Supporting Egypt
The planned bond issuance for H1 2025 continues the momentum from 2024, when the EU raised a record €138 billion in long-term funds. A significant portion of these funds will go toward supporting countries like Egypt, which has been a key partner in the EU’s strategy to foster regional stability and growth. Through these financial initiatives, Egypt benefits from enhanced support for key infrastructure projects, economic recovery, and sustainable development.
The EU has already allocated substantial funds to neighboring countries under its Macro-Financial Assistance (MFA) program, with Egypt being one of the prominent beneficiaries. These funds are designed to help countries like Egypt stabilize their economies, strengthen governance frameworks, and ensure a resilient path forward for growth.
Strengthening the EU Economy and Supporting Neighbors
The €90 billion issuance for H1 2025 builds on a strong performance in 2024, during which the EU raised a record €138 billion in long-term funds. These funds will help address ongoing challenges and provide a steady stream of financial support for EU programs. The European Commission’s ongoing bond issuance strategy plays a crucial role in funding various initiatives, including NextGenerationEU (NGEU) projects, designed to foster recovery, sustainability, and innovation.
This funding approach will not only continue to strengthen the EU bond market but will also ensure consistent support for the policies backed by EU-Bond issuances. In addition to the long-term funding operations, the Commission will maintain its issuance of short-term EU-Bills to complement its financial activities.
A Green Bond Leader
2024 marked a pivotal year for the EU’s green bond efforts, with the European Union emerging as the fifth-largest issuer of green bonds globally, with more than €68 billion outstanding under the NextGenerationEU Green Bond program.
The EU’s Green Bond Impact and Allocation report, published in late 2024, highlighted the significance of these bonds in supporting sustainable finance. Through NGEU Green Bonds, the EU is on track to achieve a 55 million ton reduction in greenhouse gas emissions annually, representing 1.5% of total EU emissions.
Ongoing Commitment to Financial Sustainability
Looking ahead, the Commission plans to issue approximately €160 billion in EU Bonds throughout 2025, reinforcing its efforts to support borrowing-based programs and ensure consistent financial support for recovery and growth initiatives across the EU.
Under EU treaties, all Member States are obligated to contribute to the EU budget, thereby ensuring the backing of the EU’s borrowing activities on the international capital markets. The unified funding approach introduced in 2023 allows for the issuance of EU-Bonds under a single brand, simplifying the allocation of proceeds across multiple programs.
A Strong and Liquid Bond Market
As of late 2024, the total outstanding stock of EU Bonds has surpassed €580 billion, with over €420 billion issued under the unified funding approach. The growing market acceptance of EU Bonds has bolstered their position as large, liquid, and high-quality assets.
In October 2024, the European Commission further supported the EU Bond market by introducing a repo facility, which helps enhance secondary market liquidity by allowing EU Primary Dealers to post prices in EU Bonds.
Supporting Ukraine and Other Global Partners
In 2024, the EU also significantly supported Ukraine through the Ukraine Facility, disbursing over €10 billion of funds. The approval of additional financial support through Macro-Financial Assistance (MFA) loans for Ukraine, and the Western Balkan Investment Facility for candidate states, has been integral to strengthening ties and promoting stability in the region.
The European Commission’s initiatives also extend to Egypt and Jordan, which have received support through EU-Bond issuances, reinforcing the EU’s commitment to fostering international cooperation and economic development beyond its borders.
Conclusion
The European Commission’s €90 billion bond issuance for the first half of 2025 highlights the EU’s steadfast commitment to promoting economic growth, sustainable finance, and international cooperation. With an expanding bond market and a strong emphasis on green initiatives, the EU is solidifying its position as a global leader in both financial and environmental sustainability.
