Now the dust has settled, let us acknowledge how remarkable it is that European leaders required only four days and nights to agree an unprecedented common economic programme. They overcame resistance from the small but rich “frugal” countries and permanently shifted the politics of the EU’s future economic decisions. Many reactions to the European Council’s decision on a recovery fund and a long-term budget focus on the ways it fell short. But too often, they look at the wrong thing.

The common EU response was never going to carry the bulk of the fiscal effort to pull the bloc’s economies out of their Covid-19 slump. For that, it is neither sufficient nor necessary. The output loss and required fiscal response are much bigger than the recovery fund, so, as usual, national budgets will do the lion’s share. But they will have no difficulty doing so, since the European Central Bank is ensuring very favourable financing conditions and the EU has set up big crisis lending programmes for governments.

The agreement struck on Tuesday is nevertheless a big deal, even economically. It roughly doubles the regular EU budget’s size for the next three years. Some recipients stand to receive significant transfers. Italy can hope for a total award of perhaps 5 per cent of its annual national income, smaller and poorer countries quite a bit more. Loans of a similar magnitude, if not larger, will come on top.