Tuesday, July 21, 2020 6:19 AM EST
European leaders have finally struck a deal on a massive coronavirus recovery stimulus fund after a marathon summit of negotiations. The talks, which went on four days and nights, saw a split between frugal member nations who wanted to balance the cost of the stimulus program and member nations who have been hit the hardest by the virus.
The President of the European Council, Charles Michel, tweeted "Deal" at 03:15 GMT on Tuesday, shortly after the leaders of the 27 nations reach an agreement which marks the biggest joint borrowing every agreed by the European Union.
European indices surged higher at the opening of markets the next day with the DAX 30 stock index gaining the most. Did you know you can speculate on stock market indices using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets!
The deal is comprised of €390 billion in grants to member states who have been hit the hardest by the coronavirus pandemic, with Italy and Spain set to be the main beneficiaries. An additional €360 billion will be made available in the form of low-interest loans to all members of the bloc.
The deal - which became the longest meeting of European leaders over the past 20 years - still needs to undergo technical negotiations by member states and will also need to be ratified by the European Parliament, before the European Commission can borrow the €750 billion from international markets to distribute to member states.
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