Next Generation EU: A successful joint borrowing that paves the way for more initiatives in the future

Author: Yannick Laude



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The European Union has become a major player in the financial markets thanks to Next Generation EU, a €750 billion debt mechanism to finance the post-Covid recovery plan. It is an undeniable success, says the initial assessment drawn up by Valérie Hayer, and adopted today by a large majority of the plenary session of the European Parliament meeting in Strasbourg. The report is particularly pleased that the EU is the world's largest issuer of green bonds, and also with the sound financial management of the European Commission.

Indeed, the report regrets that the temporary nature of the loan limits the full potential of the Union's bonds. Moreover, co-rapporteurs propose to diversify the profile of investors, and in particular to provide banking products aimed at European citizens so that they can invest directly in the future of their children. The report stresses that common debt makes it possible to borrow at lower rates and that a European borrowing strategy could enable Member States to meet the costs of the investments required by the climate and energy transition at a lower cost. In this regard, EP co-rapporteurs consider that other European joint borrowings should not be ruled out, in particular to finance our energy and strategic autonomy.

Valérie HAYER (Renaissance, France), parliamentary rapporteur for the Borrowing Strategy to finance Next Generation EU and coordinator of Renew Europe in the Committee on Budgets (BUDG), said:

“After more than a year of implementation, we say it bluntly: Yes, the recovery plan has allowed states to recover. Yes, investors have confidence in the Union. Yes, the joint borrowing is a success! In particular, the Union has become the largest issuer of green bonds in the world. As COP27 has just ended, it is an extraordinary fact that many nations around the world would do well to learn from in order to fight climate change. From now on we must give Europeans, you and me, the possibility of holding European debt and investing in Europe. Let us also give every European the right to own a piece of the history of our integration”.


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