Italy’s deputy prime minister Matteo Salvini has told his party he wants to keep its fractious coalition government going, but is ready to see it collapse if he cannot push through his flat tax plans and other priority measures.

European shares rose slightly yesterday, reversing initial losses, as anxiety over political stability in Italy appeared to ease just hours before a cabinet meeting to set budget targets.

The referendum result in Italy, which comes after Donald Trump's election last month and the Brexit referendum in June, could now potentially trigger a further bout of political and economic turmoil not just in Italy, but across Europe too, argues Andrew Hammond.

Get a taste of some of the interesting and quirky happenings in Europe from our Europe correspondent, Ann Cahill.