EU leaders agree about 'historic' deal on post-pandemic recovery

European Union leaders reached a "historic" deal on a massive stimulus plan for their coronavirus-hit economies at a pre-dawn meeting on Tuesday after a fractious summit that lasted almost five days. Summit chairman Charles Michel tweeted "Deal" shortly after the 27 leaders finally reached an agreement at a 5.15 a.m. (0315 GMT) plenary session.

"This agreement sends a concrete signal that Europe is a force for action," Michel said at a dawn news conference. "It is about a lot more than money. It is about workers and families, their jobs, their health, and their well-being. I believe this agreement will be seen as a pivotal moment in Europe's journey, but it will also launch us into the future."

French President Emmanuel Macron said the deal was "truly historic" and that he was convinced the recovery plan and budget could meet the coronavirus pandemic's challenge. "This was a summit whose conclusions are truly historic. We have put in place the capability to borrow collectively, to put in place a collective recovery plan, for the first time," Macron said. "With this recovery plan, we will reach a near doubling of the European budget over the next three years."

Officials said the deal, which came after Michel presented compromises on a 750 billion euro recovery fund, is critical to dispel doubts about the bloc's very future. Michel proposed that within the 750 billion euro fund, 390 billion should be non-repayable grants, down from 500 billion proposed initially, and the rest in repayable loans. News of the deal saw the Euro rise to a fresh four-month high of $1.1470.

The EU was slow to coordinate its initial response to the COVID-19 pandemic and, already weakened by Britain's departure from the bloc, a united front on economic aid would demonstrate that it can step up to a crisis and stay united. But the tortuous summit looked like failing at times with Europe split between north and south. "It's breathtaking to see that we have done it.

We have reached a huge milestone setting up the European Union's future," said European Commission President Ursula von der Leyen, after almost 100 hours of negotiations. The summit approached the record length set at a 2000 meeting in Nice's French city of almost five full days.