The European Commission plans to use a portion of the bond proceeds to fund payments to Ukraine under the Ukraine Facility program.
According to the European Commission’s website, it intends to issue EU bonds worth up to €65 billion in the second half of 2024.
Proceeds from these EU bonds will finance payments under the NextGenerationEU and other policy programs, including payments to Ukraine under the Ukraine Facility program, the statement said.
From the previous bond issuance, the EU also allocated €6 billion under the Ukraine Facility for 2024.
The EU bond issuance is expected to continue growing to €150–160 billion per year in 2025 and 2026 to fund a broader range of EU policy programs.
The European Commission borrows funds on international capital markets on behalf of the EU and distributes them to member states and third countries under various borrowing programs.