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EU to do "everything necessary" to cushion coronavirus economic hit

BRUSSELS, March 10 (Reuters) - The European Union will do "everything necessary" from allowing state aid for companies to engineering an investment fund worth 25 billion euros to combat economic fallout of the coronavirus outbreak, the bloc's national leaders decided on Tuesday.

Speaking after chairing a video-conference of the 27 national EU leaders on the health emergency, European Council President Charles Michel told a news conference: "We stand ready to make use of all instruments necessary."

He added that would be to ease state aid rules, help company liquidity and allow flexibility under the bloc's restrictions on public finances.

Speaking at the same news conference, the head of the bloc's executive, the European Commission's Ursula von der Leyen said the bloc would launch an investment fund worth 25 billion euros, with immediate release of 7.5 billion to cushion the economic hit. (Reporting by Gabriela Baczynska; Editing by Sandra Maler Francesco Guarascio, John Chalmers)