Italy has emerged from elections with no clear winner, driving markets around the world markedly lower as investors worried that one of Europe’s biggest economies would be unable to stay the course on 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.

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.

Media mogul Silvio Berlusconi is promising Italians if they vote him back into office that he will not only abolish an unpopular tax on primary residences, but refund property taxes Premier Mario Monti's government made them pay in 2012.

Italian premier Mario Monti will set the tone for beleaguered business and political leaders gathering in Davos this week for the annual World Economic Forum (WEF), with a speech entitled ‘Leading against the odds’.

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

Former premier Silvio Berlusconi sharply criticised the decision by Mario Monti to run in Italy’s general elections and vowed to launch a parliamentary inquiry into the 2011 fall of his government and appointment of Monti as Italy’s premier.

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.

Italian Premier Mario Monti said today he would not run in February’s elections, but if political parties that back his anti-crisis agenda ask him to head the next government he would consider the offer.

Italian Premier Mario Monti is spurning Silvio Berlusconi’s offer to run on a centre-right ticket backed by the media mogul in February elections.

Italy’s president has dissolved parliament following the resignation of Prime Minister Mario Monti, formally setting the stage for general elections in February in which Mr Monti’s participation remains unclear.

Prime minister Mario Monti has handed in his resignation to Italy’s president, bringing to a close his 13-month technical government and preparing the country for national elections.

Prime Minister Mario Monti has handed in his resignation to Italy’s president, bringing to a close his 13-month technical government and preparing the country for national elections.

With Mario Monti bowing out after taking some tough austerity measures, Italy is braced for a tough election battle as Silvio Berlusconi re-enters ring, reports John Lloyd

Italian premier Mario Monti has defended his government’s austerity measures as necessary to restore confidence in Italy’s financial future, and warned voters to beware “magic solutions” promised by candidates in upcoming elections.

MARIO Monti, who intends to resign after just over a year as Italy’s prime minister, restored international credibility to his country and dragged it back from the brink of financial collapse.

Milan magistrates have ordered police to search for a Moroccan nightclub dancer at the centre of a sex trial involving Silvio Berlusconi, now seeking a fifth term as prime minister in an election next year, after she failed to show up in court.

Mario Monti, the Italian prime minister announced on Saturday that he would resign once the 2013 budget is approved, potentially bringing forward an election and fuelling speculation that he might run.

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 Mario Monti has told the country’s president that he intends to resign since Silvio Berlusconi withdrew his support for the year-old government of technocrats and intends to quit as soon as Parliament passes critical budget legislation.

Silvio Berlusconi says he’s running to be premier again – for the good of Italy.

Silvio Berlusconi’s People of Freedom party withdrew its support for Italy’s technocrat prime minister Mario Monti, setting up a conflict that could force an early election.

Shoring up Europe's banking sector and strengthening oversight of economic policies are the issues at the top of the agenda during a meeting of EU finance ministers that is expected to expose divisions among the continent's powers.

Italy’s prime minister today pledged not to abandon Afghanistan as his country pulls out its troops, saying Rome will “transform” its support but not leave altogether.

Former Italian premier Silvio Berlusconi has backed off from suggestions he may be seeking a comeback.

An Italian man has eluded Vatican security and scaled the 427ft high dome of St Peter’s Basilica in the Vatican to protest over Italian government and European Union policies.

Taoiseach Enda Kenny has warned that December’s budget would be the harshest so far but, regardless of cutbacks, the country needs the EU to deliver on a promise to help lighten the massive €64bn bank debt.

The Taoiseach is set to meet the Italian Prime Minister Mario Monti in Rome today.

Former Prime Minister Silvio Berlusconi has returned to the political frontline after months in the shadows, vowing to abolish a key tax on homes in remarks likely to stoke investors’ jitters about Italy’s future after an election next spring.

EU leaders appeared to be lining up behind the ECB’s expected purchase of government bonds, with even German chancellor Angela Merkel not opposed.

France and Italy yesterday piled more pressure on the ECB to agree steps this week to reduce crippling borrowing costs for southern eurozone states.

The great Italian caricaturist Altan had a cartoon on the front of La Repubblica in recent days, in which an Italian is sinking below the waves, shouting: “I’m drowning!” On the beach, a fat man whose swimsuit sports the German national colours, says: “Zat is how you learn, zpendthrift!”

Italy’s prime minister Mario Monti warned of a potential breakup of Europe without greater urgency in efforts to lower government borrowing costs, as a standoff over ECB help for Italy and Spain hardened.

The US has raised pressure on eurozone leaders to take decisive action to solve the debt crisis, by lowering troubled members’ borrowing costs, before a crucial European Central Bank meeting.

The possible return of Silvio Berlusconi to the political stage spooked rival politicians and investors, but it would be foolish to write the wily fox off yet, says Barry Moody

Former Italian premier Silvio Berlusconi suggested that he will attempt a return to power — using the old party name that brought him into politics two decades ago.

Former Italian premier Silvio Berlusconi has suggested in an interview that he will attempt a return to power – using the old party name that brought him into politics two decades ago.

The Italian government has approved plans to save up to €26bn over the next three years.

SOME 40 MPs in Zimbabwe have undergone a mass circumcision — please insert your own joke here about Coalition TDs already being castrated.

Financial markets rose today after European Union leaders threw a lifeline to the eurozone’s tottering banks.

The leaders of Germany, France, Italy, and Spain agreed yesterday on a €130bn package to try to revive economic growth in Europe.