BANKERS warned today that Italians have no choice but to accept a government that agrees to play by the European Union’s economic rules.

The Milan stock index was down nearly 3 per cent, weighing particularly hard on banks, and Italian bonds suffered a plunge reminiscent of the worst days of the financial crisis of 2011.

The government’s borrowing rate for two-year money more than doubled by over 1.5 percentage points to 2.4 per cent, indicating a surge in investor concern.