EU Plans Super Exit to Markets with €835 Billion in Eurobonds

The European Union (EU) is preparing to issue up to €835 billion in eurobonds over the coming years, surpassing all previous borrowing records—including the €635 billion Recovery Fund—amid ongoing concerns about member states’ rising public debts. The plan, revealed by EU Budget Commissioner Piotr Serafin on October 1, 2025, includes €150 billion from the newly established Security and Defence Investment Facility (SAFE), aimed at boosting Europe’s defence capabilities, and an additional €685 billion for new financial instruments such as Catalyst Europe, a Crisis Shield mechanism, Global Europe, and support for Ukraine. Despite not yet having repaid the Recovery Fund loans, the Commission asserts strong investor demand and confidence in EU bonds, citing their safety, liquidity, and attractive yields. With 19 member states already expressing interest in SAFE funding—exceeding available resources—the EU positions itself as a major bond issuer, ranking fifth among euro-denominated issuers. Serafin emphasized that EU bonds now offer built-in diversification, making them resilient to national-level shocks and ideal ‘safe-haven’ assets amid geopolitical uncertainty. The EU also plans to leverage frozen Russian assets in Belgium as collateral for war-related loans. As the bloc prepares for long-term market presence, Serafin noted that further borrowing mandates from EU leaders may follow.