Eurobonds 2026 : Europe’s financial weapon against China and the United States
Faced with the rising power of the United States and China, the European Union is reviving the idea of eurobonds — a common debt instrument capable of financing strategic investments and strengthening the euro’s geopolitical role. Defense, breakthrough technologies, energy transition… the European continent is betting on this mutualization to remain competitive, while also sparking internal debates and resistance.
At the informal summit of the 27 — where the 27 European heads of state and government met on February 12 in Alden Biesen, Belgium — the issue of European competitiveness was at the heart of discussions. French President Emmanuel Macron put an old but strategic idea back on the table: issuing eurobonds, or common European debt. Today, each state borrows independently, but some already highly indebted countries struggle to finance future-oriented sectors. Eurobonds would make it possible to borrow together to invest together, offering greater borrowing capacity and more favorable financing conditions.
The objective is twofold: to massively finance strategic sectors and strengthen the role of the euro against the dollar
In concrete terms, this common debt would function like European Treasury bonds, attracting investors from around the world. The project, already discussed during the eurozone crisis (2010–2012), had been rejected by Germany and the so-called “frugal” countries (Netherlands, Finland) for political and budgetary reasons. But the experience of the 2020 European recovery plan, financed by a joint €750 billion borrowing program, demonstrated that debt mutualization was both possible and credible.
The objective is twofold: to massively finance strategic sectors and strengthen the role of the euro against the dollar. Three major priorities are targeted. The first is defense, with the need for rearmament and strategic autonomy in the face of rising geopolitical tensions. The second is technology, to invest in artificial intelligence, semiconductors, and industrial innovation in order to remain competitive with American and Chinese giants. Finally, the green transition, requiring colossal investments for economic decarbonization, infrastructure, and renewable energy.
Eurobonds would not only increase Europe’s borrowing capacity but also reduce borrowing costs for the most fragile countries
According to Mario Draghi’s report, these needs could amount to up to €1.2 trillion per year. Eurobonds would not only increase Europe’s borrowing capacity but also reduce borrowing costs for the most fragile countries, while creating a single European bond market, thereby consolidating the Union’s geopolitical weight.
For Emmanuel Macron and other supporters, eurobonds are “a tool to think about Europe not state by state, but as a collective force capable of protecting its strategic interests.” Yet opposition remains. Critics fear that some countries could take advantage of mutualization to reduce their budgetary efforts, putting collective financial solidity at risk. This debate goes beyond technicalities and touches on Europe’s capacity to act as a global power.
Can Africa draw inspiration from this model ?
Beyond Europe, the eurobond initiative could also interest Africa. For African countries facing massive infrastructure and technology needs, a similar mechanism could inspire innovative financing solutions. The European experience shows that mutualized debt can strengthen credibility on financial markets, attract foreign investment, and reduce the cost of capital. Investors in European eurobonds could thus be made aware of viable, high-impact African projects, particularly in energy, transport, and regional connectivity. Africa could consider drawing inspiration from this model for its own regional or pan-African bonds, such as those explored within the framework of Afriquor and other continental initiatives, in order to mobilize funds while maintaining strategic control over key projects.
