Shares in Italian banks rose 1.7pc  by 0813 GMT, further recovering from the September 2016, lows hit last week.

Yields across the government bond curve were down 4-5 basis points on the day as prices rose.

That pushed the gap between Italian 10-year bond yields and safer German peers to 272 bps -- its tightest in just over a week.

Conte made the remarks after the market closed on Monday.

He also told his two coalition partners to end their constant feuding or seek new elections, threatening to resign.