The prospect of political paralysis hung over Italy on Monday as partial official results in crucial elections showed an upstart protest campaign led by a comedian making stunning inroads, and mainstream forces of center-left and center-right wrestling for control of Parliament’s two houses.

The story of the election in the eurozone’s third largest economy was shaping up to be the astonishing vote haul of comic-turned-politician Beppe Grillo, whose 5 Star Movement has capitalized on a wave of voter disgust with the ruling political class.

Another surprise has been the return as a political force of billionaire media mogul Silvio Berlusconi, who was forced from the premiership at the end of 2011 by Italy‘s debt crisis, and whose forces now had a strong chance of capturing the Italian Senate. His main rival, the center-left Pier Luigi Bersani, appeared headed toward victory in Parliament’s lower house.

The unfolding murky result raised the possibility of new elections in the coming months and bodes badly for the nation’s efforts to pass the tough reforms it needs to snuff out its economic crisis. After surging in the wake of exit polls, Milan’s main stock index slumped with first projections before closing up slightly.

The Italian election has been one of the most fluid in the last two decades thanks to the emergence of Grillo’s 5 Star Movement, which has throbbed with anger with politics as usual. The movement came against a backdrop of harsh austerity measures imposed by technocrat Premier Mario Monti — who has fared miserably in the elections.

Many eligible voters didn’t cast ballots, and a low turnout is generally seen as penalizing established parties. The turnout, at just under 75 percent, was the lowest in national elections since the republic was formed after World War II. Disgust with traditional party politics likely turned off voters, although snow and rain — this was Italy‘s first winter time national vote — also could be a factor.

The decisions Italy‘s government makes over the next several months promise to have a deep impact on whether Europe can decisively stem its financial crisis. As the eurozone’s third-largest economy, its problems can rattle market confidence in the whole bloc and analysts have worried it could fall back into old spending habits.

Bersani, a former communist, has reform credential as the architect of a series of liberalization measures and has shown a willingness to join with Monti, if necessary. But he could be hamstrung by the more left-wing of his party.

His party would have to win both houses to form a stable government, and given the uncertainty of possible alliances, a clear picture of prospects for a new Italian government could take days. It is all but impossible that Bersani would team up in a “grand coalition” with his arch-enemy Berlusconi.

Grillo’s camp also played down the prospect of cooperation with the ex-premier, who has been embroiled in sex and corruption scandals.

“Dialogue with Berlusconi? It is very difficult to imagine that Berlusconi would propose useful ideas (for the movement),” said 5 Star Movement candidate Alessandro Di …read more
Source: FULL ARTICLE at Fox World News