ABSRJ 2024 Volume 15, Number 1

Green bonds, borrowing and other important (revolutionary) novelties of the European Union budget for the period from 2021 till 2027

Draško Veselinovič
Slovenian Business and Research Association, Belgium



The EU budget 2021 – 2027 stands at 1,824.3 billion euros. It has two parts: Next Generation EU (750 billion euros) and Multiannual Financial Framework (1,074.3 billion euros). The EU is already issuing different debt instruments to finance more than 40% of its budget (750 billion euros). One third of this borrowing (250 billion euros) will be financed through the EU Next Generation Green Bonds. We prove that issuing new short- and long-term EU debt instruments has become an important source and novelty for the EU budget. We also prove that there are many other important, even ‘revolutionary’ novelties connected to the EU budget 2021 – 2027. We explore all these novelties in a very systematic way what represents original contribution to the financial research. We research the EU green bonds for the first time in the systematic way. We also explore some green bonds’ characteristics and requirements to prove that the EU green bonds are very financially and strategically important novelty for the EU 2021 – 2027 budget.

Keywords: EU budget; EU bonds; green bonds

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