Issuing European – Community bonder Up to 835 billion euros is planned by the European Union (EU) In the next few years, breaking any previous record (along with the 635 billion euro recovery fund) from markets.
This astronomical total amount that the EU will borrow through the issuance of Community bonds comes from what it said on Wednesday (1.10.2025), the Community Commissioner for the Community budget, Pratt Serafin, speaking at the 7th annual seminar of the European Capital Markets.
In addition to lending through the EU War Fund (SAFE) of € 150 billion, from 2028 to 2034, as provided by the draft of the new Community budget, the Commission will borrow an additional € 685 billion (ie total of Safe) on behalf of EU countries: Europe, the crisis mechanism (which concerns both citizens’ security …), Global Europe and Ukraine.
And not only that, but according to what they arise from the so -called Serafin, the Safe itself aimed at Europe’s defense is an indirect guarantee that the EU can be consistent with the loans it receives from international markets from now on.
Serafin said that “for years we have failed to invest in our defense readiness. Now we have to cover the difference. And we have to cover quickly. Safe will help here. It will allow the Commission to provide 150 billion euros in attractive loans to the Member States to enhance Europe’s defense readiness. But Safe measures are not just about most expenses. They also relate to costs in Europe, the creation of innovation and jobs here, on our continent.
Investors often talk about “safe shelters”. With our Safe program, they would help ensure that the EU would remain a “safe haven”, and in terms of security. When Safe was announced in early spring, there was a lot of debate on a possible low absorption by the Member States. On the contrary, 19 Member States expressed interest in an amount that exceeded the 150 billion euros available. The Safe program will have an extensive time horizon. In this way, further assurances are provided on the continued role of the EU as an important issuer of bonds in the near future. “
The new borrowing tools provided by the new budget
Serafin also referred to the new Community budget: “A few weeks ago, the Commission also presented its proposals for the next multi -year budget. With our new proposal for the Financial Policy Program, we ensure that Europe maintains a strong and predictable presence in the capital markets.
We are promoting the submission of new borrowing programs for both our Member States and our partners. For Member States, this means up to € 150 billion in policy loans through Catalyst Europe and a new crisis mechanism with up to 0.25% of EU GDP per year (400 billion euros in 2028 – 2034) as additional vibration capacity.
For our partners, we propose up to € 100 billion for Ukraine through Ukraine’s reserve for both loans and grants. And in the context of World Europe, € 95 billion can be used in guarantees and loans. These amounts may sound large, but they fall completely in our publishing capacity. “
Demand Record from investors for EU bond issuations
For anyone who thinks that the increase in EU lending is … a problem for her, it is enough to read what Serafin estimates: “Many have not expected that in recent years the EU would become the leading publisher in European financial markets. We are now the fifth largest bond publisher in euro.
And while EU lending began as a crisis tool, there has been a driving force for market development, financial stability and international confidence in the euro. We have seen a demand for investors for EU bond issuations even in market volatility. And this strong demand comes from investors both inside and outside the European Union.
This should not be surprising, because EU bonds are safe, EU bonds are fluid and EU bonds offer attractive returns. This provides an opportunity to invest in Europe as a whole. Our pan -European scope means that our bonds are accompanied by a built -in differentiation, making them less sensitive to domestic events.
So if you are looking for a safe haven in these troubled times, an EU bond would be a good spot to get started. In recent years, we have also built from the beginning the necessary ecosystem that supports the issuance of EU bonds.
This includes, of course, the European Central Bank, the European Stability Mechanism and the European Investment Bank. There are also many private sector participants who helped us achieve this. And that was an impressive effort. All of these steps have trusted in EU bonds many of the features of the world’s top publishers.
For example, the liquidity of EU bonds has continued to improve and is now comparable to that of large government bonds in Europe. By the way, the inclusion of EU bonds to state bond indicators would obviously help. Therefore, we welcome the fact that an indicator provider has now created a new family of indicators in which it combines traditional government bonds with EU bonds. This will make it easier for investors to include EU bonds in their reference indicators.
It is already clear that we will maintain a significant presence in financial markets for the coming decades. One reason is that we will need to refinance much of the existing debt. Another important reason, however, is that we have received orders from our Member States to finance specific support measures, and we may receive more in the future. “