The leaders agreed on a plan to jointly borrow €750 billion to respond to the coronavirus pandemic, which has claimed more than 135,000 lives in the Continent.
The EU's recovery fund will give out 390 billion euros of grants and 360 billion euros of low-interest loans.
"We did it! We have reached a deal on the recovery package and the European budget for 2021-2027. This is a strong deal. And most importantly, the right deal for Europe right now," said European Council President Charles Michel on his Twitter account.
"Alongside the recovery fund, EU leaders have agreed on the long-term EU budget for 2021-2027, which will be worth €1074 billion. The budget will support investment in digital and green transitions," he added. (ILKHA)
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