The EU as a borrower

The European Commission is empowered by the EU Treaty to borrow from the international capital markets, on behalf of the European Union.

The EU has some EUR 57 billion in outstanding bonds. It has a liquid yield curve consisting of 19 benchmark issues of over EUR 1 billion maturing until 2042.

The EU currently has three loan programmes which are funded through bonds issued on the capital markets:

• The European Financial Stabilisation Mechanism (EFSM) exists to providesupport to any EU Member State, up to EUR 60 billion. It has been activated for Ireland for up to EUR 22.5 billion and for Portugal for up to EUR 26 billion.
• The Balance-of-payments programme (BOP) provides assistance  to non-euro area Member States up to EUR 50 billion (EUR 10.4 billion outstanding)
• Macro-Financial Assistance (MFA) is a form of financial aid extended by the EU to partner countries. So far there is EUR 1.1 billion in bonds outstanding.

In addition, the European Commission manages the

• Package of pooled bilateral loans from euro area Member States to Greece; the package initially comprised a total of EUR 80 billion, which was finally lowered to EUR 52.9 billion.