The OECD Sovereign Borrowing Outlook provides an update of trends and developments associated with sovereign borrowing requirements, funding strategies, market infrastructure and debt levels from the perspective of public debt managers. The central government marketable gross borrowing needs are calculated on the basis of budget deficits and redemptions largely based on a survey on the borrowing needs of OECD member governments. The funding strategy entails decisions on how borrowing needs are going to be financed using different instruments (e.g. long-term, short-term, nominal, indexed, etc.) and which distribution channels (auctions, tap, syndication, etc.) are being used.The paper, based on the OECD Sovereign Borrowing Outlook 2013, analyses the key forces shaping this outlook for the OECD area and country groupings, notably the euro area. In addition, the paper focuses on the challenges faced by European and other OECD sovereign issuers, while highlighting the policy response to the extraordinary stress in European sovereign debt markets in 2011 and 2012.