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Q&A: Germany and France relying on member states to row in behind €500bn Covid deal

Italy and Spain would stand to benefit most from major injection of funds

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French President Emmanuel Macron speaks at a joint video news conference with German Chancellor Angela Merkel to discuss Europe's economic recovery plans to respond to the coronavirus crisis at Elysee Palace in Paris, France May 18, 2020. Francois Mori/Pool via REUTERS

French President Emmanuel Macron speaks at a joint video news conference with German Chancellor Angela Merkel to discuss Europe's economic recovery plans to respond to the coronavirus crisis at Elysee Palace in Paris, France May 18, 2020. Francois Mori/Pool via REUTERS

REUTERS

French President Emmanuel Macron speaks at a joint video news conference with German Chancellor Angela Merkel to discuss Europe's economic recovery plans to respond to the coronavirus crisis at Elysee Palace in Paris, France May 18, 2020. Francois Mori/Pool via REUTERS

David Chance asks the questions that matter - and answers them - as Angela Merkel and Emmanuel Macron try to push through a deal to battle impact of pandemic.

What has been agreed?

Germany and France have struck a deal that aims to provide €500bn in funding for the battle against the coronavirus pandemic.

It is hoped that the funding will contribute towards bridging the gap between hardline northern states, such as the Netherlands, and the demands for debt mutualisation from countries such as Italy, who have been hit hard.