25 February 2013 Last updated at 21:03 ET
Italy's elections have reached a nail-biting conclusion
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Italy's parliamentary elections have ended in stalemate and the possibility of a hung parliament.
With nearly all the votes counted, the centre-left has narrowly won the lower house of parliament but Silvio Berlusconi's centre-right is challenging for control of the Senate.
His party secretary said the election remained "too close to call". Control of both houses is needed to govern.
A protest movement led by comedian Beppe Grillo surged into third place.
The outcome of the election, which comes amid a deep recession and tough austerity measures, was so close that a final declaration from the interior ministry was not expected for some hours.
Continue reading the main story
Analysis Gavin Hewitt Europe editor
Italy appears to be heading for political deadlock.
Whilst the centre-left under Pier Luigi Bersani seems to be heading for victory in the lower house, Silvio Berlusconi and his allies are performing strongly in the Senate. It may give him influence but he will not be returning to power.
To complicate matters further, the protest movement led by the comedian Beppe Grillo is showing huge gains.
Certainly Mr Bersani will try to form a government but the question is, whether such a coalition would command credibility. Already, politicians are talking of the need for a second election.
"It is clear to everyone that a very delicate situation is emerging for the country," said centre-left leader Pier Luigi Bersani as the last of the votes were being counted.
Angelino Alfano, secretary of former Prime Minister Silvio Berlusconi's People of Freedom party, said the result was "extraordinary", and he urged the interior ministry not to declare a final result because of the possible margin of error.
With returns from almost all polling stations processed, Mr Bersani's centre-left bloc had won 29.54% of the vote for the lower house (Chamber of Deputies), barely ahead of the 29.18% polled by Mr Berlusconi's bloc.
Initial exit polls on Monday afternoon gave Mr Bersani's bloc a clear victory, prompting the Milan stock market to soar by nearly 4%.
But as the close result became clear the markets fell back. In New York, the Dow Jones Industrial Average fell 1.55% and shares in Tokyo opened sharply lower.
The apparent split between left and right in the eurozone's third largest economy is likely to cause great anxiety among leaders in other EU member states.
Mr Berlusconi, 76, left office in November 2011, facing claims of economic mismanagement as the eurozone struggled to contain Italy's debt crisis.
Italians have had more than a year of technocratic government under Mario Monti. But his attempts to reduce spending caused widespread public resentment and his decision to head a centrist list in the parliamentary elections attracted little more than 10% of the vote.
In a surge in support, Beppe Grillo's Five Star Movement attracted 25.54% of the vote.
The results from votes cast outside Italy are still to be collected.
The BBC's Alan Johnston in Rome says that with the balance of forces playing out as they are, it is hard to see a stable government emerging quickly and easily, if at all.
Our correspondent says that many analysts are now talking of the possibility of fresh elections soon in a quest for a more decisive result.
Continue reading the main story
Italy's parliamentary elections have ended in stalemate and the possibility of a hung parliament.
With nearly all the votes counted, the centre-left has narrowly won the lower house of parliament but Silvio Berlusconi's centre-right is challenging for control of the Senate.
His party secretary said the election remained "too close to call". Control of both houses is needed to govern.
A protest movement led by comedian Beppe Grillo surged into third place.
The outcome of the election, which comes amid a deep recession and tough austerity measures, was so close that a final declaration from the interior ministry was not expected for some hours.
Continue reading the main story
Analysis Gavin Hewitt Europe editorItaly appears to be heading for political deadlock.
Whilst the centre-left under Pier Luigi Bersani seems to be heading for victory in the lower house, Silvio Berlusconi and his allies are performing strongly in the Senate. It may give him influence but he will not be returning to power.
To complicate matters further, the protest movement led by the comedian Beppe Grillo is showing huge gains.
Certainly Mr Bersani will try to form a government but the question is, whether such a coalition would command credibility. Already, politicians are talking of the need for a second election.
"It is clear to everyone that a very delicate situation is emerging for the country," said centre-left leader Pier Luigi Bersani as the last of the votes were being counted.
Angelino Alfano, secretary of former Prime Minister Silvio Berlusconi's People of Freedom party, said the result was "extraordinary", and he urged the interior ministry not to declare a final result because of the possible margin of error.
With returns from almost all polling stations processed, Mr Bersani's centre-left bloc had won 29.54% of the vote for the lower house (Chamber of Deputies), barely ahead of the 29.18% polled by Mr Berlusconi's bloc.
Initial exit polls on Monday afternoon gave Mr Bersani's bloc a clear victory, prompting the Milan stock market to soar by nearly 4%.
But as the close result became clear the markets fell back. In New York, the Dow Jones Industrial Average fell 1.55% and shares in Tokyo opened sharply lower.
The apparent split between left and right in the eurozone's third largest economy is likely to cause great anxiety among leaders in other EU member states.
Mr Berlusconi, 76, left office in November 2011, facing claims of economic mismanagement as the eurozone struggled to contain Italy's debt crisis.
Italians have had more than a year of technocratic government under Mario Monti. But his attempts to reduce spending caused widespread public resentment and his decision to head a centrist list in the parliamentary elections attracted little more than 10% of the vote.
In a surge in support, Beppe Grillo's Five Star Movement attracted 25.54% of the vote.
The results from votes cast outside Italy are still to be collected.
The BBC's Alan Johnston in Rome says that with the balance of forces playing out as they are, it is hard to see a stable government emerging quickly and easily, if at all.
Our correspondent says that many analysts are now talking of the possibility of fresh elections soon in a quest for a more decisive result.