Germany's Merkel: We need a European recovery fund

"We must act in a European way so that we get out of this crisis well," Germany Chancellor Angela Merkel said on Monday. "We need a European recovery fund, Germany and France discussed this today," Merkel added.

Additional takeaways

"Recovery fund must contribute to the goal that all member states have the means to get out of the crisis."

"Proposed European recovery fund should have a volume of 500 billion euros."

"Recovery fund should give grants, no loans to member states."

"It's crucial that EU bonds will be paid back via the EU budget, national parliaments will have to give the green light."

"There is a possibility of EU treaty changes in the longer run, but now it's about agreeing on short-term measures."

Market reaction

Germany's DAX 30 continues to push higher and was last seen gaining 4.2% on the day at 10,904 points.