Of the €1.8trillion, the EU’s coronavirus recovery fund accounts for €672.5billion (£580billion) of which €360billion (£311billion) are grants.
Some states such as the Netherlands and Austria had called for the package to be made up of loans rather than one-off grants to states such as Italy and Spain.
In order to access the money, each state must issue a plan to the Commission on how it will reform and invest in making the economy more green while boosting its resilience to a future crisis.
So far, 22 of the 27 governments have sent their plans for approval by other member states and the Commission.
It is expected the money will begin to be released next month while the Commission has claimed it will borrow €150billion (£129billion) a year between 2021 to 2026.
On Monday, the EU announced the approval of the scheme and will therefore be able to borrow money from capital markets.
EU Council President, Antonio Costa revealed the announcement and insisted the bloc cannot waste time in beginning its economic recovery.
Johannes Hahn, Commissioner in charge of Budget and Administration, said: “Today, we are making yet another step forward in the preparations for the first borrowing operation to finance our collective recovery via NextGenerationEU.
“By issuing some €80 billion of long-term bonds and using additional short-term bills this year, we will manage to cover Member States’ most urgent needs and set them on the path towards a sustainable recovery and a green, digital and resilient Europe.”
The EU had come under heavy scrutiny for its slow vaccination plan which has only kicked into gear over the last few months.
Indeed, some EU states had looked outside of the bloc for vaccines due to the slow rollout plan.
With the bloc’s initially slow rollout now up to speed, officials now hope they can welcome essential British tourists to the bloc over the summer.
Speaking today, the EU’s ambassador to the UK, Joao Vale de Almeida expressed his hope for increased tourist travel to boost economies in the bloc.
He told the Today programme: “I hope many, many British citizens will come to our countries and I hope many EU citizens will visit the UK.
“We’re hopeful that sometime later in the summer, around July, we could be in a situation where travel and tourism will be made a lot easier.”