The European Union expressed hope on Monday that a shock decision by Germany's constitutional court to halt ratification of a $885 billion COVID-19 recovery fund would not delay it for long.

The European Commission, which designed the recovery fund, said it stood by its historic stimulus plan and insisted its "legality was in order."

The Commission "remains confident" that the "court will decide swiftly" on the case, an EU spokesman told reporters.

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Following approval by both the upper and lower houses of parliament in Germany, President Frank-Walter Steinmeier had been due to sign off on the fund to complete the country's formal ratification process on Friday.

But five individuals filed a challenge, prompting the court to decide that the ratification "shall not be executed pending the decision of the Federal Constitutional Court on the temporary injunction application."

Crucial 'own resources' decision

Ratification by member states would give Brussels new powers, known as "own resources," to raise funds to repay pooled debt independently from the EU's national governments.

"It's crucial that the own resources decision is rapidly approved by all member states, in particular in light of the challenges due to the COVID-19 pandemic," said the bloc's spokesman.

So far, 16 of the 27 member states have ratified the plan. 

The EU's goal is to have the approval process completed "by the end of the second quarter of this year," so the first payments from the fund can begin, the spokesman added.

France's President Emmanuel Macron and Germany's Chancellor Angela Merkel had sketched out the fund last year, which was eventually agreed by the bloc's 27 members in December as part of a $2.12 trillion budget up to 2027.

The move will enable the bloc to offer loans and outright grants to member countries hit hardest by the pandemic.