NextGenerationEU funding strategy

Key points:

The EESC

• welcomes the fact that the Own Resources Decision (ORD) entered into force on 1 June 2021,  enabling the Commission to start borrowing resources for the NextGenerationEU recovery instrument;
• finds that a well-functioning funding strategy is key for the smooth implementation of NextGenerationEU (NGEU);
• highlights that sound and sustainable funding and solid risk management are in the very interest of everyone. Moreover, borrowing and debt management has to be based on democratic control, legitimacy and transparency;
• stresses how important it is that the Commission manage the funding strategy directly and not outsource this and it welcomes the Commission's increase in its human resources in this domain;
• finds that an advisory board should be established, on which the Commission, the European Parliament, the Council, social partners and organised civil society are represented;
• stresses the importance of preserving the EU's high creditworthiness and low borrowing costs in order to avoid redistributive effects from borrowers to lenders;
• welcomes that one precondition for participation in the Primary Dealer Network (PDN) is supervision by a competent authority of the Union;
• supports the establishment of solid risk-management systems and the holding of the 'NGEU account' with the ECB. The Chief Risk Officer (CRO) should consult the European Parliament and the Council when drawing up the High-Level Risk and Compliance Policy;
• welcomes the planned 'NGEU Green Bond framework' and proposes that the issuance of NGEU social bonds be considered.