http://news.bbc.co.uk/2/hi/europe/7346666.stm
Berlusconi 'wins' Italy election
The first results are being counted
Italy's conservative leader Silvio Berlusconi is set to win Italy's general election, according to projections from partial results.
The projected results showed Mr Berlusconi's coalition ahead for both the lower house and the Senate.
The 71-year-old's main rival, the centre-left leader Walter Veltroni, 52, has conceded victory.
The vote was held three years ahead of schedule after the collapse of Romano Prodi's centre-left coalition.
Mr Veltroni told supporters: "As is the custom in all Western democracies, I telephoned Berlusconi to acknowledge his victory and wish him good luck in his work."
Mr Berlusconi expressed "deep satisfaction" about the results, reported Ansa news agency.
With the economy a key election issue, both men had promised modest tax cuts and reductions in bureaucracy.
Talks expected
A projection on RAI state TV showed Mr Berlusconi 6% ahead in the lower house Chamber of Deputies. The channel projected that he would win 164 seats in the Senate, compared to 139 for his rivals.
Another projection gave Mr Berlusconi a lead of about 9% in both parliament and the Senate.
Official results may not be issued until Tuesday.
PROJECTED RESULTS
CHAMBER OF DEPUTIES (630 SEATS):
Centre-right bloc 45%;
centre-left bloc 39% (Rai)
Centre-right bloc 46.5%;
centre-left bloc 37.7% (Ipsos)
SENATE (315 SEATS):
Centre-right bloc 164 seats;
centre-left bloc 139 (Rai)
Centre-right bloc 47.2%;
centre-left bloc 38.1% (Ipsos)
If victory is confirmed, billionaire Mr Berlusconi will take up a third term in office.
Neither of the main contenders can hope for an overall majority without the help of their allies or other minor parties, says the BBC's David Willey in Rome.
The Northern League, part of Mr Berlusconi's "Freedom Coalition", is believed to have put up a surprisingly strong showing, getting between an estimated 6%-8% of the votes in both houses.
Tricky coalition talks are expected in the coming days.
The next government faces the task of reviving Italy's ailing economy, with zero growth forecast for the coming year.
Economic pinch
Although Italy faces a massive public debt, both candidates promised tax cuts and handouts to voters.
Italy's economy has been suffering from low productivity and a strong euro, and analysts say young people, pensioners and low-income workers are feeling the pressure.
Both candidates had promised to revitalise Italy's economy
Some 158 different parties contested the regional and national polls, including Mr Berlusconi's new conservative People of Freedom (PDL) and Mr Veltroni's recently formed Democratic Party (PD).
At the start of the election campaign, opinion polls gave Mr Berlusconi's bloc a commanding lead, but it had narrowed as the election drew near.
At 80%, the final turnout appears to have been lower than in the last election, two years ago.
Mr Berlusconi has served two terms as prime minister, last resigning in May 2006.
The tycoon, one of Italy's richest men, is the head of a business empire that spans media, advertising, insurance, food and construction and includes the successful football club AC Milan.
Mr Veltroni is a former communist who served for seven years as mayor of Rome before taking over the leadership of the centre-left coalition led by Mr Prodi after his government collapsed in January.
The new government will be Italy's 62nd since World War II.
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