EU Reaches ‘Historic’ Deal on Pandemic Recovery

European Union leaders reached a “historic” deal on a massive stimulus plan for the bloc’s economy, which is stagnating by the Covid-19. They reached the historic deal in the early hours of Tuesday after five days of negotiations.

The agreement paves the way for the European Commission, the EU’s executive, to raise billions of euros on capital markets on behalf of all 27 states, an unprecedented act of solidarity in almost seven decades of European integration. Summit chairman Charles Michel said that it’s “a pivotal moment” for Europe.

Under the compromise, the Commission will borrow 750 billion euros using its triple-A debt rating, disbursing 390 billion in grants – less than the originally targeted 500 billion – and 360 billion in cheap loans. According to Reuters.

Many warned that the failure to reach an agreement would have put the viability of the European Union under suspicion, especially after years of economic crisis and Britain’s departure.

French President Emmanuel Macron, who spearheaded a push for the deal with German Chancellor Angela Merkel, hailed it as “truly historic”.