EU leaders have struck a deal on a huge post-coronavirus recovery package following a fourth night of talks. It involves €750bn in grants and loans to counter the impact of the pandemic in the 27-member bloc.

The talks saw a split between nations hardest hit by the virus and so-called “frugal” members concerned about costs. It is the biggest joint borrowing ever agreed by the EU. Summit chairman Charles Michel said it was a “pivotal moment” for Europe.

The deal centres on a €390bn programme of grants to member states hardest hit by the pandemic. Italy and Spain are expected to be the main recipients. A further €360bn in low-interest loans will be available to members of the bloc. The package will allow members to maintain spending in the aftermath of lockdowns that badly affected public finances.