London (CNN) Emmanuel Macron has said that the European Union faces a "moment of truth" as it reckons with the devastating financial fallout of the coronavirus pandemic, warning that "the populists will win" and the bloc will splinter if is unable to unify in its response.

The French President said the EU's economic approach will determine whether it is "a political project or a market project only," in an interview with the Financial Times published on Friday. The EU's member states have been engaged in a standoff over how to tackle the financial hit of the Covid-19 outbreak.

"If we can't do this today, I tell you the populists will win," he added, predicting a wave of Euroskepticism in the countries hit hardest by the pandemic if the EU does not support them. "Today, tomorrow, the day after, in Italy, in Spain, perhaps in France and elsewhere."

"It's obvious because people will say, 'What is this great journey that [the EU] are offering? These people won't protect you in a crisis, nor in its aftermath, they have no solidarity with you,'" he said.

"'When immigrants arrive in your country, they tell you to keep them. When you have an epidemic, they tell you to deal with it. Oh, they're really nice,'" Macron added, paraphrasing populist arguments.

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