After months of talks and negotiations between member states, concluding in a five day summit, EU leaders have finalised their coronavirus recovery deal. The €1.8TN in overall spending includes a €750 billion rescue fund to deal with the covid crisis, of which €390 billion will be made in grants.
The ‘frugal four’ – the Netherlands, Sweden, Denmark and Austria – had previously rejected offering €500 billion worth of grants to the hardest hit countries. In the end, the €390 billion figure was a compromise, and ‘frugal’ nations agreed to this after being offered rebates on their contributions to the EU budget in the future.
Although it is weak against the pound this morning, the euro is expected to benefit from this agreement in the long term.
