On the 14th of April 2021 the EU Commission adopted a new funding strategy under the temporary recovery instrument “NextGenerationEU”. The programme is at the heart of the EU response to the Covid-19 crisis. It aims to support the economic recovery, offering grants and loans to boost reforms and investments within the EU Member States.
The aim of such a strategy is to raise up around € 800 billion in current price, until 2026. This will make Europe one of the most efficient issuers, capable of borrowing around €150 billion per year. The new strategy put in place by the NextGenerationEU brings a fundamental change with respect to the past. It embraces the new funding needs, using a flexible and diversified set of instruments and techniques, through clear and transparent communication activities set up with the market participants. The good coordination with other issuers (e.g. EU Member State and supranational) as well as a strong governance will ensure coherence and solidity to the entire system.
This strategy, together with the predictability of those instruments, will lead to a virtuous economic circle: from the attraction of new investors to the strengthening of the Euro at global level. It is estimated that all the borrowing will be repaid by 2058.
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