EU leaders reach agreement on budget and Covid recovery package

European Council president Charles Michel (centre) welcomed the agreement Picture: Yves Herman, Pool via AP

European Union leaders have sealed an agreement on a massive long-term budget and coronavirus recovery package, EU Council president Charles Michel has said.

The deal was agreed at an EU summit in Brussels despite objections from Hungary and Poland.

“Now we can start with the implementation and build back our economies. Our landmark recovery package will drive forward our green and digital transitions,” Mr Michel said in a tweet.

Deal on the #MFF and Recovery Package #NGEU

Now we can start with the implementation and build back our economies.

Our landmark recovery package will drive forward our green & digital transitions. #EUCO

— António Costa (@eucopresident) December 10, 2020

The 1.82 trillion-euro long-term budget and recovery package is considered vital for many European countries whose economies have been devastated by the virus.

Poland and Hungary had agreed to the deal in July but later vetoed it over a new mechanism that would allow Brussels to cut off EU funds to countries that violate Europe’s democratic standards.