The European Commission is suspending its strict rules on public deficits to allow governments to open the money taps to battle the coronavirus pandemic.

In an unprecedented decision, Brussels triggered the "general escape clause", giving countries free rein to "inject spending into the economy as needed", said EU chief Ursula von der Leyen.

The temporary measure effectively halts strict oversight by Brussels of national spending and will be welcome in Italy - the country suffering most from the coronavirus outbreak and one that is in breach of EU rules.

EU finance ministers are expected to formally approve the clause next week. The derogation is only allowed in cases of "an unusual event outside the control" of a member state.

Italy has announced a €25bn spending bonanza, with fellow debt-rule breakers France and Belgium following suit with their own massive spending sprees.

The escape clause was created in 2011 in the height of a debt crisis, when the rules on debt and deficits were tightened in an effort to preserve the single currency bloc from further shocks.

Known as the stability and growth pact, the rules theoretically limit a country's deficit to 3pc of annual output and debt to 60pc - a number that Italy has more than doubled in recent years.

An EU spokeswoman said that triggering the escape clause will allow countries to spend without limit on medical equipment, enforcing containment measures and on expanding hospitals.