The incredible rise of Beppe Grillo’s Five-Star Movement in Italy has left the markets in turmoil.

A centre-left group of parties appears to have the best chance at forming a coalition government in Italy after an inconclusive national election, but the challenge is steep and comes amid public anger over austerity measures.

Italy faced political paralysis today as near-complete election results showed no clear winner and raised the possibility of a hung parliament.

Italy's crucial elections appear to be heading toward deadlock, according to initial results.

Exit polls show Pier Luigi Bersani’s centre-left coalition leading in an Italian election that is testing the country’s resolve to maintain painful economic reforms.

Italians are voting for a second day in a national election which will determine if they are prepared to stay the course of painful economic reform or send a message of discontinuity to the political class that led the country to the brink of disaster by rallying around a protest party.

Italy’s chance of stable government after elections this weekend may rely on forcing two awkward partners into coalition: former European Commissioner Mario Monti and an openly gay leftist he has vowed not to work with.

Italy is going to the polls today and tomorrow for a watershed parliamentary election that could shape the future of one of Europe’s biggest economies.

Centre-left leader Pier Luigi Bersani is favourite among Italians to lead the next government, with outgoing technocrat prime minister Mario Monti second most popular and Silvio Berlusconi coming a close third, a poll showed yesterday

Italian premier Mario Monti announced he is heading a new campaign coalition made of up centrists, business leaders and pro-Vatican forces who back his “ethical” vision of politics, aiming for a second mandate in office if his fledging reform movement wins in parliamentary elections.

Prime minister Mario Monti has told Italy’s president he is resigning because he can no longer govern after Silvio Berlusconi’s party withdrew crucial support.

Italian Premier Silvio Berlusconi has confirmed he will not run again for office and said his hand-picked successor Angelino Alfano will be his party’s candidate when Italy holds new elections.

ITALIAN Prime Minister Silvio Berlusconi, facing record bond yields and calls for his resignation, said Italy is “up to the task” of tackling the debt crisis as its economic fundamentals are solid.

A huge crowd gathered in Rome tonight to rally against the Italian premier Silvio Berlusconi as confidence votes on the conservative government looms in Parliament.

BRUISED but not broken, Italian Prime Minister Silvio Berlusconi appears to be milking his recovery from an assault by a protester this week to try to divide opponents by striking an unusually conciliatory tone.