EU mulling major bond sale to fund energy, defence - report

The European Union is poised to launch a major bond sale, it was reported on Tuesday, as it seeks to boost energy and defence spending following Russia’s invasion of Ukraine.

According to Bloomberg, citing unnamed officials familiar with the discussions, the proposal could be presented later this week when EU leaders meet at an emergency summit in Versailles. Specifics regarding how the debt sale would work, and how much money needed to be raised, have yet to be agreed, Bloomberg added.

A European Commission spokesperson said officials were continuing to monitor the situation but declined to discuss details.

However, on Monday evening Paolo Gentiloni, the EU’s commissioner for the economy, told fellow politicians in Strasbourg: "We have to find new tools to address new issues this crisis raises in front of us."

Investors welcomed the report, with the Stoxx Europe 600 ahead 1% by 0945 GMT and the euro up against the dollar. Yields on EU bonds also rose on the prospect of increased supply, Bloomberg noted.