EU leaders reach deal on Covid-19 recovery fund after marathon summit

The 27 member states of the European Union this morning signed off on a €1.8 trillion package to fund the next seven years of spending and inject funds into struggling economies to help them weather the devastation of the Coronavirus pandemic.

The summit was one of the longest ever, and leaders negotiated through the night once again on Monday before announcing a deal had been reached at 5.30am on Tuesday.

“It has been a very challenging number of days negotiating this package but it has been worthwhile. The solidarity displayed throughout this summit is something that I think will stand Europe in good stead into the future,” Taoiseach Micheál Martin said after the deal was clinched.

“The Covid-19 challenge is unique, its impact in terms of economic social and political life is very severe and it necessitated a response of this scale and magnitude.”

The recovery package involves a €750 billion in grants and loans that will be funded by jointly-guaranteed borrowing by the European Commission, the first time this has been done and a proposal that faced significant resistance from a group of so-called frugal northern member states led by the Netherlands.

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