The European Commission has proposed a massive €750bn (£670bn; $825bn) recovery fund to help the EU tackle an "unprecedented crisis".

The package will be made up of grants and loans for every EU member state, reports BBC.

Economies across the 27-nation EU bloc have been ravaged by the Covid-19 pandemic, but several southern states had big debts even before the crisis.

Some countries - among them Austria, the Netherlands, Denmark and Sweden - are opposed to taking on debt for other countries, and think the relief should come as low-interest loans rather than cash handouts.

EU chief Ursula von der Leyen will have to win over these sceptical member states to push the plan through.