EU leaders clinch €750 billion coronavirus Recovery Fund

News: European Union has agreed upon a historic €750 billion ($860 billion) coronavirus recovery fund.

Facts:

  • Coronavirus Recovery Fund: The fund is aimed at containing an unprecedented economic downturn in the EU countries caused due to Covid-19 induced disruption.
  • What does the fund contain? There are two parts of the fund:
    • Euro 360 billion in low-interest loans for countries most hit by Covid-19. 
    • Euro 390 billion in grants to the worst affected economies.
  • Significance of the fund: 
    • The EU as a whole will borrow money from the markets instead of individual countries.
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