Great economic rescue plan agreed by EU leaders

The EU leaders held a video conference and agreed on a plan for introducing billions of euros of emergency aid into the devastated European economy.

Great economic rescue plan agreed by EU leaders

According to the resolution, they agreed to create a large recovery fund, closely linked to the seven-year budget of the bloc.

They also confirmed that €540bn (£470bn) of financial support would be released through existing mechanisms from 1 June.

European Commission chief Ursula von der Leyen said the fund would mobilise €1 trillion of investment.

There has been bitter argument over how to fund the much-needed aid. But Italy’s Prime Minister Giuseppe Conte said “great progress” had been made on Thursday.

Italy – which has had the deadliest outbreak in Europe to date – had urged its EU partners, especially the richer countries of northern Europe, to show more solidarity.

Leaders also agreed to follow guidance from the EU Commission – the organisation’s executive arm – on easing their respective lockdowns once the spread of the virus had reduced for a “significant period”.

Details of how the longer term recovery plan will be funded will be discussed at another videoconference on 6 May.

There had earlier been divisions over sharing the burden, with the Netherlands, Denmark, Austria, Germany and Sweden opposing France’s proposal on how to support Italy and Spain in their recovery.