The agreement was reached during a video conference chaired by Croatian Finance Minister Zdravko Maric, whose country currently holds the presidency of the EU.
Last Friday, the European Commission gave a green light for the activation of the general escape clause.
The clause allows structural adjustment under the Stability and Growth Pact’s preventive and corrective arms to be suspended in the event of a severe economic downturn in the euro area, or the EU as a whole, as long as fiscal sustainability is not at risk.
The finance ministers, who took part in the teleconference on Monday, "discussed appropriate measures at EU level that would reduce the negative impact of the COVID-19 virus on member states' economies," according to the information issued on the website of the Croatian Presidency.
The ministers focused on measures "adopted by the Commission and the ECB (European Central Bank), which would in turn significantly facilitate the implementation of the necessary activities at Member States level."
Virtually all EU countries are substantially increasing their public spending to counter the spread of the coronavirus COVID-19 and support the economy.
Also, taking into account the significant negative impact that COVID-19 virus has on the stability of Member States' public finances, "the ministers agreed that the conditions for the use of general escape clause of the EU fiscal framework are fulfilled. This will give Member States the opportunity to go further with providing fiscal incentives to their economies," Minister Maric was quoted as saying.