BRUSSELS: Italian Prime Minister Giuseppe Conte said on Friday that Europe needed to prepare for a "hard Brexit", as fundamental issues still separated Britain from its former European Union partners in trade talks.

Italy has been highly supportive of Britain since the country voted to leave the EU bloc and has consistently stressed the need for all sides to make compromises to secure a deal.

But speaking to reporters after an EU summit, Conte struck a downbeat tone. "Time is running out and we need to prepare for a hard Brexit," he said, referring to the possibility of Britain walking away without a trade accord.