All 28 EU member states approved Wednesday financing 3 billion euros ($3.33 billion) to meet the needs of more than 2 million refugees in Turkey.
The agreement comes after Italy blocked the funding but was later convinced by the EU in exchange for provisions to ease its budget deficit.
The funding is part of a refugee action plan agreed upon with Turkey at a summit on Nov.29. The EU hopes the deal will help stem the flow of refugees coming into Europe.
Mark Rutte, prime minister of the Netherlands, which is currently holding the rotating Presidency of the Council of the EU, said in a statement Wednesday: "We are working continuously to stem the flow of migrants to Europe. The agreements between the EU and Turkey are a vital part of this"
"They aim at targeting human traffickers and launching projects which will help give those in and around the refugee camps the hope of a better future," Rutte said.
One billion euro of the funding will be provided from the EU budget. The remaining 2 billion euros will come from EU member states based on their gross national income.