The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

The EU recovery fund may transform European bond markets

The EU’s new recovery fund is a historic step to help the countries worst affected by Covid avoid a debt trap. If the EU’s short-term bills become a risk-free, interest-rate instrument, this temporary response to the deadly virus could become a permanent change to Europe’s capital markets

iStock whale EU recovery png 1920px.png

In This Story

  • Vast issuance programme
  • EU could soon be borrowing €200 billion a year
  • Where to start?
  • Syndications first, with new issue concessions
  • The case for T-bills
  • Early move could raise a lot of money quickly
  • Becoming a sovereign
  • Pitch is high quality exposure to whole of EU
  • Euros, but maybe dollars too
  • Issuing outside the euro would give flexibility
  • Completing CMU
  • T-bills might transform Europe's capital markets
  • Temporary to permanent?
  • Will emergency response be dismantled?

    Towards the end of September the EU will launch a large new borrowing programme in the international debt capital markets that may see it sell over €30 billion of new bonds in the last three months of 2020. That is more than the EU has ever issued in any single year before.

    Next year, it will borrow more than twice that amount just to complete the €100 billion funding of the catchily titled Support to mitigate Unemployment Risks in an Emergency (Sure) programme, first proposed by the European Commission in April and approved by the European Council in May.


    You have reached premium content. Please log in to continue reading.

    Read beyond the headlines with Euromoney

    For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


    Unlimited access to and

    Expert comment, long reads and in-depth analysis interviews with senior finance professionals

    Access the results of our market-leading annual surveys across core financial services

    Access the results of our annual awards, including the world-renowned Awards for Excellence

    Your print copy of Euromoney magazine delivered monthly

    £73.75 per month

    Billed Annually


    Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

    Sign up to any of our newsletters, curated by our editors


    Already a user?


    Peter Lee head.jpg
    Editorial director
    Peter Lee is editorial director. He joined Euromoney straight from Oxford University in 1985, and has written about banking and capital markets ever since, being appointed editor in 1999. He became editorial director of Euromoney in May 2005.