Check against delivery Ladies and Gentlemen, „Unprecedented“ has become one of the most used words or even overused these days. But as overused it might seem, it is appropriate in these challenging times. In the past months, we have faced unprecedented challenges, but we have also managed to find equally unprecedented swift and comprehensive solutions: We used the strength of solidarity to launch a forward-looking stimulus package of more than 2 trillion euro to overcome the pandemic. And, when Putin started his war against Ukraine and thus against our values, we proved again that unity is our best answer. To support Ukraine, the EU and its Member States provided more than 23 billion Euro in direct and indirect support, put in place powerful sanctions and took effective action to diversify our energy supplies ahead of the winter. [How we used the European firepower] EU debt issuance is a core element of the EU‘s answer to rise to these historic challenges. Faced with the massive common shock of the COVID pandemic, EU borrowing has allowed the EU to implement a powerful centralised fiscal response: SURE, the very successful and well perceived programme to support employees in the EU during the crisis will be almost fully disbursed by the end of the year. NGEU provides a massive injection of support – up to 800 billion Euro or 5% of EU GDP – for investment and reform to make the European economy fit for the future by becoming greener, more digital and more resilient. A sensible use of borrowing therefore provides a valuable extra fuel tank for financing important EU policies. This lesson is already being applied to the energy crisis. Through the (nearly agreed) RePowerEU, debt issuance may be used to finance loans to Member States to support energy diversification to the tune of EUR 225 billion. In addition to the central role of SURE and NGEU in responding to the pandemic, EU debt issuance is now being used to finance the provision of support to Ukraine. Discussions are underway to allow EU loan support for Ukraine to continue through 2023 in a predictable manner, using again EU debt issuance as the means to mobilise the funding. Over the last 2 years the EU has grown to one of the biggest issuers of euro-denominated debt. This offers investors new opportunities to invest in a liquid and safe asset in the European capital market with good returns. For us it means that we are able to support economic and social cohesion and thus lay the foundations for future growth. The value-driven character of our issuance has galvanised investors. The strong support of the market for our SURE social bonds and NGEU Green Bonds speaks for itself. [Withstanding the current challenging market conditions] Our NGEU bonds offer a unique combination of solidity and diversification, which is much needed in times of geopolitical stress. This is valued by investors, who have stood with us all the way through the challenging market conditions that prevailed in 2022. Faced with increased reliance on EU borrowing to finance crisis-responses, we need to cement our position as a trusted and established issuer. Our NGEU diversified funding strategy has blazed the trails that we need to follow. We will be looking at how to extend this toolbox to help us meet these other funding needs. Our most recent syndicated transaction, in which we financed 2 policies (NGEU and UKR MFA) with a single bond, showcased some of the synergies that we can build on going forward. Many factors contributed to the successful establishment of the EU in the capital markets. One of the most critical has been the excellent cooperation with our primary dealers. We are proud to count Santander as one of our trusted partners in establishing the EU as a fixture in EU debt capital markets. You have helped in the successful execution of our deals, promoted our issuance to your clients, provided valuable advice and insight for our investor outreach, and carried the EU flag in your markets. The support by Santander and our other leading primary dealers has helped develop our franchise to the extent that we now have more than 1000 investors in 70 countries. EU issuances, such as the NextGenerationEU bonds, are a win-win endeavour for all of us: citizens, companies, investors and capital markets. [Conclusion] Investing in EU bonds is investing in the future: in a greener, more digital and independent Europe. We are thus sowing the seeds today, so we can harvest growth, jobs, and prosperity tomorrow. Our European measures are only one part of the picture. Fostering sustainable growth is a global and joint effort for which Banks, Governments, and businesses need to work hand in hand. While our European public policies are supporting the green and digital transition, we are also counting on you, the banking sector, to play your part – including through your continued championing of EU bonds as the means to build towards a brighter, European future. The sovereign debt crisis has shown that working together made Europe stronger and more resilient. And what counts for Europe counts for the globe. We are already sharing our experiences with issuers across the globe to support sustainability, prosperity and growth, freedom and democracy – in Europe. Thank you! Details Publication date3 November 2022LocationMadrid
