The eurozone’s debt crisis strategy was in chaos on Monday night after anti-austerity parties appeared on track to win a majority of seats in the Italian parliament, vastly complicating efforts to forge a government able to carry through EU-imposed reforms.

In an earthquake result, the Five Star protest movement of comedian Beppe Grillo looked likely to emerge as the biggest single party in the lower house. The scourge of bankers and corrupt elites, Mr Grillo has campaigned for a return to the lira and a restructuring of Italy’s €1.9 trillion (£1.64 trillion) public debt.

The conservative bloc of ex-premier Silvio Berlusconi looked poised to win the senate, coming back from the political grave with vows to rip up the EU’s austerity plans and push through tax cuts to pull Italy out of deep slump.

“The majority of Italians have clearly voted against the Brussels consensus. That is a damning indictment,” said Mats Persson from Open Europe.

“This election is close to being the worst-case scenario for the markets. If there is one wild card in the European pack willing to do anything, it is Silvio Berlusconi, and he is sitting on the biggest barrel of gunpowder in Europe,” said Mr Jenkins.

“Italy is big enough to blow up the whole eurozone. That means Italy’s leader can take a tough line in the pyschological game with Germany. The question is what markets will do. The Italian debt auction on Wednesday will be very interesting to watch.”

Output contracted by 2.1pc last year, and is expected to fall 1.4pc this year. The economy will have shrunk by almost a tenth from its peak by 2014. The youth jobless rate has reached 37pc. By any measure, it has become a depression.

... But Grillo is a real showman. In 2007, he organised the hugely successful "Vaffanculo Day" to protest against the country's rotten politics.

What does Vaffanculo mean? Er ... It's a sweary way of saying "go away".

actually the original 'day' was a less sanitized version for the public... it ammounted to a 'F-U' day toward all politicians...