EU Budget Plan to Revive Joint Bond Issuance for Crisis Funding

The European Commission plans to include a mechanism for issuing common European Union bonds in its forthcoming multi-year budget proposal, according to a report by the Financial Times.

The instrument would allow Brussels to tap capital markets collectively on behalf of member states when future economic or geopolitical shocks strain national finances. The move revives elements of the €800 billion pandemic-era NextGenerationEU programme, which was the first large-scale example of joint borrowing in the bloc.

Details of the size, trigger conditions and governance of the new facility are expected to be unveiled alongside the draft 2028-2034 EU budget later this month. Supporters argue that a standing framework would speed emergency funding and reinforce financial stability, while several northern member states have previously resisted making joint debt issuance a permanent feature of EU policy.