EU finance ministers have failed to agree on how to support their lockdown-hit economies, suspending discussions that went on all night until Thursday (April 9).

A feud between Italy and the Netherlands over the conditions attached to euro zone credit blocked progress, diplomatic sources said, on half a trillion euros worth of aid for governments, companies and individuals.

Finance ministers want to agree a package to cushion the economic slump, finance recovery, and turn a page on divisions that have emerged over how to grapple with the outbreak.

Joint debt is a battle line between struggling southern economies like Spain and Italy, and more frugal northern states led by Germany and the Netherlands.

To support countries hit by lockdowns, the EU has already suspended its limits on state aid and let member states spend more and incur more debt.

But Spain, France and Italy say that is not enough. They want further credit lines opened up and see it as a test of solidarity that could make or break the EU.

Eurogroup chairman Mario Centeno said ministers did come close to a deal, but, quote, we are not there yet.