Commission Implementing Decision (EU, Euratom) 2025/363 of 21 February 2025 amending Implementing Decision (EU, Euratom) 2023/2825 as regards the rules on risk management and compliance framework for borrowing, debt management, liquidity management and lending operations and non-competitive auction allocation
Date: 2025-02-21
Institutions: Directorate-General for Budget, European Commission
Subjects: EU aid, EU borrowing, EU financing arrangements, EU strategy, debt, financial aid, financial management




L_202500363EN.000101.fmx.xml












Official Journal of the European Union


EN
L series













2025/363


25.2.2025







            COMMISSION IMPLEMENTING DECISION (EU, Euratom) 2025/363
of 21 February 2025
         
amending Implementing Decision (EU, Euratom) 2023/2825 as regards the rules on risk management and compliance framework for borrowing, debt management, liquidity management and lending operations and non-competitive auction allocation


THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,


Having regard to the Treaty establishing the European Atomic Energy Community,


Having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (1), and in particular Article 224(2) thereof,

Whereas:







(1)


Commission Implementing Decision (EU, Euratom) 2023/2825 (2) sets out a risk management and compliance framework for borrowing, debt management, liquidity management and lending operations. That framework includes the role of the Chief Risk Officer.












(2)


By Commission Decision (EU, Euratom) 2025/369 (3), the Commission’s financial risk management and compliance framework for borrowing, debt management, liquidity management and lending operations within the meaning of Implementing Decision (EU, Euratom) 2023/2825 has been enhanced and its coverage extended also to financial risks arising from the asset management operations, budgetary guarantees and financial assistance. In that context, the scope of oversight by the Chief Risk Officer has been extended to cover financial risks arising from all those financial operations.












(3)


Taking into account that Decision (EU, Euratom) 2025/369 establishes the role of the Chief Risk Officer for overseeing the financial risks arising from the Union’s financial operations, it is appropriate to clarify that the financial risk management of the borrowing, debt management, liquidity management and lending operations should be governed by the rules of that Decision. Therefore, the provisions in Implementing Decision (EU, Euratom) 2023/2825 on the role of the Chief Risk Officer and the establishment of a High Level Risk and Compliance Policy should be deleted. Moreover, the provisions on the Risk and Compliance Committee should be deleted as the remit of that Committee, its composition and working methods are now included in Decision (EU, Euratom) 2025/369. Finally, the references to the opinion of the Chief Risk Officer on the funding plan and the liquidity management strategy should be amended to reflect the provisions of Decision (EU, Euratom) 2025/369.












(4)


Faced with the need to raise increasing volumes through auctions for debt securities, it is appropriate to introduce new incentives to boost participation in these transactions. It is proposed to follow the example of Member State auction programmes to allow the credit institutions and investment firms who are members of the primary dealer network established under by Commission Implementing Decision (EU) 2023/1602 (4) to purchase additional amounts of debt securities sold at an auction following the fixing of the auction-price. In case the market price of the auctioned security increases after the auction, it allows primary dealers to buy additional debt securities at a price below market price, thus constituting an incentive to bid in the auction. Accordingly, a new type of transaction of non-competitive auction allocation should be introduced to allow buying at a set price additional amounts of the Union and Euratom debt securities within a set period following the auction. It should be possible to use the auction platform to carry out the allocation.












(5)


Implementing Decision (EU, Euratom) 2023/2825 should therefore be amended accordingly.












(6)


To ensure a smooth transition from the current governance framework set out in Implementing Decision (EU, Euratom) 2023/2825 to the new framework set out in Decision (EU, Euratom) 2025/369, the existing risk management arrangements related to the High Level Risk and Compliance Policy and the Risk and Compliance Committee should remain in place until the day of the first meeting of the Risk and Compliance Committee established in Decision (EU, Euratom) 2025/369.





HAS ADOPTED THIS DECISION:



Article 1
Implementing Decision (EU, Euratom) 2023/2825 is amended as follows:






(1)


in Article 2, the following point (17) is added:






‘(17)


‘non-competitive auction allocation’ means the issuance process whereby amounts of the Union and Euratom debt securities additional to the auctioned amounts are allocated to members of the primary dealer network established under Commission Decision (EU) 2023/1602 (*1) participating in the auction based on a set price, within a set period of time following an auction and by using, as appropriate, an auction platform to carry out the allocation.





(*1)  Commission Implementing Decision (EU) 2023/1602 of 31 July 2023 on the primary dealer network and the definition of eligibility criteria for lead and co-lead mandates for syndicated transactions for the purposes of the borrowing activities by the Commission on behalf of the Union and of the European Atomic Energy Community (OJ L 196, 4.8.2023, p. 44, ELI: http://data.europa.eu/eli/dec_impl/2023/1602/oj).’;"
                        










(2)


in Article 4(2), the second subparagraph is replaced by the following:

                              ‘When establishing the funding plan, the opinion of the Chief Risk Officer referred to in Article 6, point (b), of Commission Decision (EU, Euratom) 2025/369 (*2) shall be duly taken into account.

(*2)  Commission Decision (EU, Euratom) 2025/369 of 21 February 2025 establishing the role of the Chief Risk Officer overseeing the financial risks arising from the Union’s financial operations (OJ L, 2025/369, 25.2.2025, ELI: http://data.europa.eu/eli/dec/2025/369/oj).’;"
                        










(3)


in Article 7(1), point (c) is replaced by the following:






‘(c)


borrowing operations may be organised through a mix of syndicated transactions, auctions, non-competitive auction allocations and private placements, in all cases relying on the services of credit institutions and investment firms who are members of the primary dealer network established under Implementing Decision (EU) 2023/1602’;














(4)


in Article 8(4), the first sentence is replaced by the following:

                              ‘When establishing or amending the liquidity management strategy, the opinion of the Chief Risk Officer referred to in Article 6(c) of Decision (EU, Euratom) 2025/369 shall be duly taken into account.’;










(5)


in Article 12(2), points (c) and (d) are replaced by the following:






‘(c)


establishing arrangements and rules for the organisation of auctions and non-competitive auction allocations, including agreements with external providers of systems and constant oversight of the performance of auctions;










(d)


implementing individual borrowing transactions through syndicated transactions, auctions, non-competitive auction allocations, and private placements;’;














(6)


Article 18 is replaced by the following:

                              ‘The financial risk management of the borrowing, debt management, liquidity management and lending operations shall be governed by Decision (EU, Euratom) 2025/369.’;










(7)


Article 19 is deleted;










(8)


Articles 20 and 21 are deleted;










(9)


Articles 22 and 23 are deleted.






Article 2
This Decision shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
Article 1, points (7) and (9), shall apply as of the day of the first meeting of the Risk and Compliance Committee pursuant to Decision (EU, Euratom) 2025/369.




Done at Brussels, 21 February 2025.


For the Commission


The President

Ursula VON DER LEYEN
            





(1)  
            OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.

(2)  Commission Implementing Decision (EU, Euratom) 2023/2825 of 12 December 2023 establishing the arrangements for the administration and implementation of the Union borrowing and debt management operations under the diversified funding strategy and related lending operations (OJ L, 2023/2825, 18.12.2023, ELI: http://data.europa.eu/eli/dec_impl/2023/2825/oj).

(3)  Commission Decision (EU, Euratom) 2025/369 of 21 February 2025 establishing the role of the Chief Risk Officer overseeing the financial risks arising from the Union’s financial operations (OJ L, 2025/369, 25.2.2025, ELI: http://data.europa.eu/eli/dec/2025/369/oj).

(4)  Commission Implementing Decision (EU) 2023/1602 of 31 July 2023 on the primary dealer network and the definition of eligibility criteria for lead and co-lead mandates for syndicated transactions for the purposes of the borrowing activities by the Commission on behalf of the Union and of the European Atomic Energy Community (OJ L 196, 4.8.2023, p. 44, http://data.europa.eu/eli/dec_impl/2023/1602/oj).


ELI: http://data.europa.eu/eli/dec_impl/2025/363/oj
ISSN 1977-0677 (electronic edition)