There could hardly be a better example of Silvio Berlusconi’s approach to government than his behaviour over the past three days. Last Monday, as markets waited anxiously on his next steps, he reportedly met up with allies to discuss how his resignation might affect his family businesses.

On Tuesday, he stubbornly went ahead with a vote on the 2010 accounts despite warnings that he was no longer backed by a majority. Having lost the vote, he then went to the Italian president, promising to resign his office – in his own good time. Mr Berlusconi vowed that, before his eventual departure, he would pass the package of reforms recommended by the European Union. In doing so – il Cavaliere claimed – he was putting his country’s interest before his own.

Mr Berlusconi’s attempt to play the statesman did not convince the markets. The 10-year bond yield, which had closed at 6.77 per cent on Tuesday night, jumped as high as 7.48 per cent, while the Milan stock exchange lost nearly 4 per cent. In a further sign of market stress, the Italian bond yield curve inverted, with yields on shorter-term debt rising higher than those on longer-term paper.