European leaders have agreed they should allow member states the leeway they need to protect their economies against the coronavirus outbreak.

Among the measures is a coronavirus response investment fund backed by €7.5bn in EU funding - subject to approval by member states and the European Parliament, AFP news agency reports.

"We will use all the tools at our disposal to make sure the European economy weathers this storm," EU chief Ursula von der Leyen said.

The proposed investment fund would be aimed at healthcare systems and small businesses, she added.

"Europe is united and must take into consideration the fact that we are going through an exceptional crisis today, which requires exceptional responses," French President Emmanuel Macron said after holding a video conference with other EU leaders to co-ordinate a response to the outbreak.

The EU also said it would soon suspend rules forcing airlines to run empty planes on pain of forfeiting routes.