European Union initiates lending process in October

European Commission to Issue First Bonds for Short-Time Work Program "SURE"

The European Commission has announced that it will be issuing the inaugural bonds for the EU short-time work program "SURE". According to EU Budget Commissioner Johannes Hahn, the first tranche of bonds will be issued in the second half of October.

Hahn stated that the market is reacting very positively to the European bonds, with huge interest due to their value. The financial market is shown to be very receptive to papers of this quality. The commission's issuance of shares is seen as beneficial for the cohesion of the currency union.

The volume of the initial bond issuance for "SURE" is not yet final, but it will be significantly less than 50 billion euros. A second, larger tranche of bonds will follow in the first half of next year, aiming to reach a total volume of up to 100 billion euros.

In a recent statement, Hahn also revealed that all outstanding liabilities related to the bond issuance for "SURE" must be repaid by 2053. The commission plans to serve the bond market with different maturities, with an average maturity of 15 years, ranging from three to 30 years.

In addition to the "SURE" bonds, a second, larger tranche of bonds for "Next Generation EU" will also follow in the first half of next year. The total volume of "Next Generation EU" is not specified yet.

The success of the European bonds is expected to provide significant financial support to EU member states, helping them navigate through the economic challenges brought about by the COVID-19 pandemic. The bonds are seen as a crucial step towards strengthening the economic resilience of the European Union.

As the European Commission moves forward with the bond issuance, it is hoped that the positive market response will continue, ensuring the success of the program and the cohesion of the currency union.