EC to raise up to €800 billion to fund recovery plan

NEWS IN ENGLISH

The European Commission revealed on Wednesday that it intends to raise up to 800 billion euros to fund its NextGenerationEU economic recovery plan.

Brussels will introduce a "diversified funding strategy" when it comes to borrowing on the capital markets due to the size, "frequency and complexity" of its plan. 


The strategy will consist of announcing "annual borrowing volumes and 6-monthly funding plan's key parameters," setting up "a Primary Dealer Network" to enable "structured and transparent relations with banks," using different instruments for funding and structuring transactions by combining "auctions and syndications."


The EC plans to borrow approximately €150 billion each year until 2026, with the total amount to be repaid by 2058. Brussels added that it will start implementing the plan as soon as all EU member states ratify it.
 

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