EU Unlock €500bn to Support Countries Hit by Coronavirus Pandemic

A messy compromise to unlock €500bn (£438bn) of EU support for countries hit hardest by the coronavirus pandemic has been struck after Italy's prime minister, Giuseppe Conte, warned that the existence of the bloc was at stake.

EU finance ministers on a video conference call struck a deal late on Thursday after the Netherlands shifted on a demand for "economic surveillance" of countries benefiting from €240bn of credit lines via the European stability mechanism, a bailout fund for struggling member states.

Italy and Spain have in turn accepted a delay on agreement on so-called "coronabonds" that would allow member states to raise funds on the same terms from the financial markets. The issue of a "recovery fund" yet to be fleshed out will be put to the EU's heads of state and government at a future summit.

Italy's finance minister, Roberto Gualtieri, told reporters: "We have put on the table of the European Council a recovery fund enabling common debt issuance. Off the table is any conditionality on the use of European stability mechanism financing. Now it's up to the leaders to take the right decisions."

The Dutch finance minister, Wopke Hoekstra, said a "sensible" deal had been reached. Bailout funds would still come with conditions if the cash was spent on the wider economy rather than a response to the immediate crisis, the minister insisted.

Hoekstra tweeted: "The [European stability mechanism] can provide financial help to countries without conditions for medical expenses. It will also be available for economic support, but with conditions. That's fair and reasonable.

"We are and will remain opposed to Eurobonds. We think this concept will not help Europa or [Netherlands] in the long term."

Agreement was also...