George Soros, the billionaire anti-Brexit campaigner, has warned the European Union could collapse if Brussels fails to appease Italy's new Eurosceptic government and reform the eurozone.

“There is a strong inclination in Europe to use the occasion to teach Italy a lesson,” said Mr Soros, “If the EU follows this line, it will dig its own grave”.

“The euro has many unresolved problems and they must not be allowed to destroy the EU," he wrote in an opinion piece for the Italian newspaper Corriere della Sera.

The philanthropist called on the EU to give Italy compensation for its efforts during the migration crisis, which exposed stark divisions in the bloc. 700,000 migrants and refugees have arrived from Libya in the last five years.

“The EU is threatened by Trump’s America, Putin’s Russia, Erdogan’s Turkey and Assad’s Syria. Inside, Poland and Hungary are undermining the values on which the EU is based, but Italy is emerging as the most pressing challenge to its sustainability,” Mr Soros, a Hungarian American, said.

“The disintegration of Europe is no longer a figure of speech; it is a harsh reality," said Mr Soros, who is backing the Best for Britain campaign for a second Brexit vote before the end of the year.