GETTY•REUTERS Mariano Rajoy urged Europe to tackle the rise of populism

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Italian Prime Minister Matteo Renzi’s referendum defeat at the hands of the anti-establishment political forces saw the Europe plunged into further shock after Brexit. But conservative leader Mr Rajoy played down the rise of nationalist movements across the continent as “very much of the moment”, saying they “rise at a certain moment and can disappear”. Brushing off concerns, the 61-year-old urged failing Europe to rise above the growing populist movement and said anti-establishment parties would fail to gain power in France and Germany.

GETTY Matteo Renzi was forced to resign after the Italian referendum

If traditional political parties defend themselves with the same energy and good arguments as opponents of the system do, then things will stabilise Mariano Rajoy, Spanish PM

He said: “If traditional political parties defend themselves with the same energy and good arguments as opponents of the system do, then things will stabilise. “It’s good to explain what positive things the big European parties have done.” However, calls for a snap election could pave the way for populist movements including Five Star Movement and Lega Nord (Northern League), who have promised referendums on the nation’s eurozone membership following the Italian premier’s resignation. Mr Rajoy told the Wall Street Journal: “The Italian mess is incredible. “We don’t know who is going to be there, if there’s going to be an election, what law they’ll apply.” Italy’s shock referendum result saw the euro suffer its biggest one-day loss since June, hitting a 20-month low over fears Italy could leave the eurozone, triggering its complete crash.

GETTY Five Star Movement are set to make gains following the referendum

In pictures: Crises that have crippled Italy Thu, November 2, 2017 The European Union has warned that Italy's economy is not improving Play slideshow EPA 1 of 9 November 2016: Florence erupts in violence as anti-Renzi protesters clash with riot cops. Hooded youths attacked lines of cops protecting embattled prime minister Matteo Renzi, who was in the city for crunch political talks.

However, Britain’s pound was boosted to its highest level since September. Britain is currently locked in a battle with Spain over the sovereignty of Gibraltar in the wake of the momentous Brexit vote. Keen to make Madrid’s priorities clear, Mr Rajoy said Britain cannot cherry pick the benefits from the bloc - including gaining access to the single market while rejecting freedom of movement.

GETTY Italians voted against constitutional reform