Pressure on hardline Hague to reach Covid-19 rescue package, Italy warns of possible breakup

European Union governments piled pressure on the Netherlands on Thursday to unblock half-a-trillion euros of economic support to fight the coronavirus ahead of a meeting of finance ministers, with Italy saying the very future of the EU was at stake.

The 27-nation bloc is readying measures to help governments, companies and individuals survive the deep recession that the coronavirus pandemic is expected to cause in Europe this year.

But a 16-hour video call on the package from Tuesday afternoon had to be suspended until Thursday because the ministers got stuck on detail linked to a spilt in approach between the more frugal north and the more spendthrift south.

"It's a big challenge to the existence of Europe," Italy's Prime Minister Giuseppe Conte told the BBC.

"If Europe fails to come up with a monetary and financial policy adequate for the biggest challenge since World War Two, not only Italians but European citizens will be deeply disappointed," he said.

The package, which would bring the EU's total fiscal response to the epidemic to 3.2 trillion euros - the biggest in the world - includes steps that can be taken now and plans to support a recovery later.

Both have controversial elements that expose deep divisions among EU countries in their approach to financial burden sharing in a crisis, bringing back bitter debates and mistrust from the sovereign debt crisis of 2010-2012.

Strong push to bridge gaps

The main problem for the ministers' talks, starting at 1500 GMT, is the conditions under which euro zone governments should have access to cheap credit from the euro zone bailout fund, the European Stability Mechanism (ESM).

Italy is ready to accept very light conditions, saying the money, if...