"The important issues were approved by consensus," Nicolas Sarkozy told reporters after an EU summit in Brussels. France holds the EU presidency until the end of the year.
The 27-nation bloc approved a stimulus package of 200 billion euros ($264-billion), 170 billion of which had been announced by individual governments. The stimulus plan also envisages tax cuts, the loosening of administrative barriers for business, and the reduction of European Central Bank rates.
However, Sarkozy said the EU leaders had agreed to decide on reduced VAT rates for certain services and products, not due to expire until 2010, in March.
In a bid aimed at rescuing planned Lisbon Treaty of EU reforms, the EU also agreed concessions to Ireland on key policy areas, pledging guarantees that it would preserve its military neutrality, national tax system, and retain its representative in the European Commission.
Ireland pledged to hold a second referendum before next November on the Lisbon Treaty, a replacement for the failed EU constitution, which needs to be ratified by all the EU members. At a referendum in Ireland in July, 53.4% refused to back the document.
"The Lisbon process has been restarted," Sarkozy said.
"On the basis of today's agreement ... I am prepared to go back to the Irish people next year," Irish Prime Minister Brian Cowen said.
The bloc also reaffirmed last year's commitment to cut greenhouse gas emissions by 20% below 1990 levels by 2020 and promote renewable energy.
Nine ex-Communist states, which rely heavily on highly polluting coal-fired power plants for electricity, were offered partial exemptions from paying for emission quotas until 2019 and up to 6 billion euros ($8 billion) for environmentally friendly technology.
The East European countries had earlier threatened to veto the climate change deal.
