BREXIT: EU running out of funds to tackle Covid-19

Brussels could run out of cash to combat coronavirus if European capitals fail to agree on the bloc's next multi-annual budget.

European Commission chief Ursula von der Leyen has previously warned member states they have drastic cuts in cohesion spending, which has become central in the fight against the deadly disease.

As part of her leadership, she will unveil a new proposal for the bloc’s 2021-2027 budget designed to help keep the bloc afloat after the coronavirus crisis.

The Commission has vowed to spend £33 billion to provide liquidity to the European economy during the “deep crisis” of the COVID-19 outbreak.

Unused EU cash will be diverted to prop up small and medium-sized businesses, and complement national measures to tackle the deadly disease.

But Mrs von der Leyen has also warned the EU needs more than just a budget agreement if it is going to survive staring into the “abyss” after becoming the epicentre of the global pandemic.

“We will help Italy and Spain very intensively,” she told Politico.

“Several instruments, including bonds, are being considered and are discussed in the Eurogroup.”

Last week EU leaders failed to agree on the rollout of the so-called “coronabonds”, a collective debt scheme to help prop up the Eurozone economy.

Rome and Madrid were left infuriated after the proposals were kicked back to finance for more consideration after Germany’s Angela Merkel and the Netherland’s Mark Rutte put up stern opposition to the drastic rescue package.