EC President Charles Michel (Photo: Reuters)

The decision was announced on Tuesday after an emergency videoconference of EU leaders.

The EU will provide 7.5 billion euros immediately. The remainder will be mobilized from multiple sources in the future. The initial money will be channeled to healthcare systems, small and medium-sized companies, and the labor market.

EC President Charles Michel said it’s time for the EU to make use of all available tools to minimize economic damage.

“The European institutions, together with member states, will stand ready to make use of all instruments that are necessary, in particular on support for SMEs and specific affected sectors, and the employees' flexible application of EU rules in particular as regards state aid, and a Stability and Growth Pact will be needed,” he said.

Before the emergency meeting, many EU members took emergency measures such as closing their borders with Italy, Europe’s biggest Covid-19 epicenter.