EU debate LIVE: Juncker makes shock demand for Brussels to STAND UP to 'rampant populism'

The EU parliament’s plenary session resumes today with the prime minister of Luxembourg Xavier Bettel debating the future of Europe but the day is likely to be overshadowed by the chaotic political situation in Italy.

Mr Oettinger was forced to apologise for his comments after Italy’s populist Five Star Movement and Lega, reacted strongly to the calling the statement “absurd”.

European Council President Donald Tusk, tweeted an “appeal” to EU institutions, saying “please respect the voters, we are there to serve them, not to lecture them”.

Italian prime minister designate Carlo Cottarelli is holding "informal talks" with President Sergio Mattarella, a presidential source said on Wednesday.

Mr Cottarelli, who has been trying to put together a stop-gap government to lead the country to early elections, had been expected to meet Mr Mattarella formally, which led to expectations that he was ready to give the head of state a list of ministers.

9:05am UPDATE: Guy Verhofstadt hits back at Hans-Olaf Henkel in European Parliament

He said: “First of all I want to say to Mr Henkel that when he says democracy is important, naturally democracy is important.

“Democracy is important just because of Europe. When there was no European Union there was utter desperation in Europe, fascism in Europe between the two World Wars.

“It is since we have the European Union that we have guaranteed democracy in the European Union, that is what we have achieved.”

9.00am UPDATE: Hans-Olaf Henkel, German MEP, tears into the euro.

He said: “While Italy suffers from what they believe to an overvalued currency, German industry is achieving record export surpluses due to what it considers an undervalued currency.

“It is emphasised again and again that the euro is a peace project. Apart from the fact that Germany is not at war with other non-European countries just like Denmark, Poland or the Czech Republic, the Italians are the prime example of the exact opposite. In Italy, politicians are now successfully campaigning with anti-German slogans. Why?

“Because the euro forces the potentially largest creditor - Germany - to reproach the potentially largest debtor - Italy. A direct consequence of the Euro!

“Instead of constantly lecturing the Italians on how to become competitive in the world markets, they should be free to decide for themselves whether they want to achieve this through labour market reforms, devaluations or a combination of both. The recent election clearly show that more and more Italians see it that way.”

8.55am UPDATE: Hans-Olaf Henkel, German MEP, said Brexit was the result of too much Europe.

He said: “The dramatic growth of Europe-critical parties is the result of too much Europe. The withdrawal of Britain from the EU is the direct consequence of ‘too much Europe. The state crisis in Italy is also due to a "too much Europe", especially due to the euro.

“It is good that you say that the Brits all want to become citizens of Luxembourg but I thought you would have said also what that means for Europe.

“That basically, a country which is as big as other 19 European member states together were to leave the EU.

“You said the single market goes hand in hand with the euro, I’m sorry that is rubbish.

“Before the euro came in Italy was still a country with a world market share of six percent, that has now dropped to three percent.”

8.50am UPDATE: Maria Joao Rodrigues warns of the political crisis in Italy.

Speaking on behalf of the Progressive Alliance of Socialists and Democrats, the Portuguese politician claimed “we have been going through a crisis” with Italy showing how “fragile” the situation is.

She added: “I think the history of Italy shows the following and that is that Europe in the way it works at the moment does have some serious differences and discrepancies.

“We have the situation in Italy which shows a lack of hope in the future.

“This is because we have not managed together to deal with the migratory crisis and we have problems int eh eurozone and what this leads to is an explosive combination in certain regions where there is this huge pressure of migration and other problems to deal with. Italy sums up the European situation in a very difficult situation.”

8.40am UPDATE: Jean-Claude Juncker urges EU to stand up as rampant populism

He said: “Yes, in a years time European citizens would have voted in a new European Parliament.

“Nobody can second guess what shape it will take it will be different to this parliament, for some of my people that is a source of concerns.

“Let’s stand up against the rampant populism that we are seeing in European in all countries including mine, but Luxembourg people are by and large, wise.

“So it is not a large movement but it is a containable movement.”

Mr Juncker added: “As for foreign policy, we broadly agree with the prime minister. However, in the light of recent governments, I like Governments to agree on a perfectly straightforward principle.

“On foreign policy if we are to be efficient… We can’t lead the world if we are hobbled by unanimity.”

8.25am UPDATE: Prime Minister of Luxembourg sings praises of EU membership.

Xavier Bettel claimed European Union benefits have been taken for granted.

Mr Bettel adds that many Brits abroad have applied for EU passports, proving the value of goods and services created by the bloc.