Italy's centre-left leader Walter Veltroni conceded defeat to conservative Silvio Berlusconi in the country's parliamentary election tonight.
Italian Party for Liberty leader Silvio Berlusconi votes at a polling station in Milan yesterday
Earlier today, exit polls put the 71-year-old billionaire ahead of Veltroni by just 2-3 percentage points in both houses of parliament after two days of voting ended.
But pollsters' projections gave Berlusconi a much clearer lead of between 4.6 and 9.1 points in the Senate, making early predictions of a hung parliament -- with the centre-left controlling the upper house -- less likely.
"As is customary in all Western democracy, and as I feel it is right to do, I called the leader of the People of Freedom, Silvio Berlusconi, to acknowledge his victory and wish him good luck in his job," Veltroni told reporters tonight.
An election was called because Romano Prodi, who beat Berlusconi in 2006, resigned in January 20 months into his five-year term after his narrow majority evaporated and his coalition collapsed.
Berlusconi, was prime minister for seven months from April 1994 and from 2001-2006,
He said today that his government would quickly deal with the sale of loss-making airline Alitalia and a garbage crisis in Naples.
He told a talk show on state television that his government would serve a full five-year term, but warned that Italy faced "difficult months ahead".
"I will immediately tackle the garbage problem and Alitalia," Berlusconi said.
He gave no details but during the election campaign he criticised Air France-KLM's planned takeover of the Italian carrier and said that he would favour an Italian buyer.
Tens of thousands of tonnes of garbage piled up in the streets of Italy's third largest city and in the surrounding region this year after official landfills were declared full.
"I am moved by the election result that has emerged and by the faith that so many citizens have placed in me," Berlusconi said.