{"id":415893,"date":"2025-01-10T12:53:52","date_gmt":"2025-01-10T11:53:52","guid":{"rendered":"https:\/\/www.eunews.it\/2025\/01\/10\/eurobond-interessi-ripagarli-ue-costoso\/"},"modified":"2025-01-10T16:06:47","modified_gmt":"2025-01-10T15:06:47","slug":"post-pandemic-eurobonds-rising-interest-rates-makes-repayment-much-more-expensive-for-the-eu","status":"publish","type":"post","link":"https:\/\/www.eunews.it\/en\/2025\/01\/10\/post-pandemic-eurobonds-rising-interest-rates-makes-repayment-much-more-expensive-for-the-eu\/","title":{"rendered":"Post-pandemic Eurobonds: Rising interest rates makes repayment (much) more expensive for the EU"},"content":{"rendered":"

Brussels – Post-pandemic recovery and common debt:\u00a0the future of Eurobonds faces an uncertain path that is\u00a0not in a favorable direction.\u00a0<\/strong>The challenges of the\u00a0unprecedented instrument, justified by a generalized shutdown of the economy due to the spread of the Coronavirus, are beginning to emerge along with\u00a0all the political implications. Due to higher-than-expected interest rates, repaying EU debt securities will be expensive<\/strong>,\u00a0affecting the moods of so-called frugal countries, those traditionally wary of\u00a0committing resources.<\/p>\n

As European Parliament insiders point out in a\u00a0working paper on the 2025 agenda<\/a>, the debate on the EU’s new multi-year budget promises to be complicated. The 27 member states\u00a0will need\u00a0to consider\u00a0emerging\u00a0priorities, including\u00a0the repayment of common debt securities. Repayment of the capital relating to the NextGenerationEU program is due to start\u00a0in 2028 and last 30 years.<\/span><\/span> “As a result of higher than estimated interest rates, the cost has increased abruptly in the current financial period<\/strong>,” it warns.<\/span><\/span> <\/span><\/p>\n

<\/a>\u00a0It is not just a question of the money lent but also interest. According to preliminary estimates, “the total cost for the period 2028 to 2034, covering both the capital and the interest rates, is now estimated at between \u20ac140 billion and \u20ac168 billion <\/strong>(current prices) depending on whether repayment is spread with an equal yearly amount or with an equal share of gross national income (GNI).”\u00a0<\/span><\/span><\/span><\/p>\n

The EU’s next multi-year budget covers 2028 to 2034, with the European Commission due\u00a0to submit\u00a0an initial proposal by July 1. The proposal\u00a0will have to consider the new priorities. It\u00a0means new programs and funding areas, starting with defense, including new realities such as repayment of post-pandemic Eurobonds.<\/p>\n

The repayment of common debt securities requires member states to draw from their national budgets. This public spending is at odds with the austerity approach typically associated with the northern European member states.<\/p>\n","protected":false},"excerpt":{"rendered":"

Just for 2028-2034, the period of the upcoming EU budget, between 148 and 160 billion euros. Common debt securities represent an accounting and, therefore, a political challenge for the future and the new budget.<\/p>\n","protected":false},"author":494,"featured_media":415889,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","subtitle":""},"jnews_primary_category":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[25705,25727],"tags":[29807,26025,29150,26985,26153,30147,28791,26305,28966],"class_list":["post-415893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-in-the-spotlight","tag-debt-community-en","tag-eurobond-and","tag-tassi-di-interesse-en","tag-interessi-en","tag-next-generation-eu-en","tag-recovery-fund-en","tag-shooting-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/415893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/users\/494"}],"replies":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/comments?post=415893"}],"version-history":[{"count":4,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/415893\/revisions"}],"predecessor-version":[{"id":415921,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/415893\/revisions\/415921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/media\/415889"}],"wp:attachment":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/media?parent=415893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/categories?post=415893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/tags?post=415893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}