Italy's conservative leader Silvio Berlusconi is set to win Italy's general election, according to projections from partial results.

The projected results showed Berlusconi's coalition ahead for both the lower house and the Senate.

The 71-year-old's main rival, the centre-left leader Walter Veltroni, 52, has conceded victory.

The vote was held three years ahead of schedule after the collapse of Romano Prodi's centre-left coalition.

Veltroni told supporters: "As is the custom in all Western democracies, I telephoned Berlusconi to acknowledge his victory and wish him good luck in his work."

Berlusconi expressed "deep satisfaction" about the results, reported Ansa news agency.

Economic pinch

Although Italy faces a massive public debt, both candidates promised tax cuts and handouts to voters.

Italy's economy has been suffering from low productivity and a strong euro, and analysts say young people, pensioners and low-income workers are feeling the pressure.

Both candidates had promised to revitalize Italy's economy.

Some 158 different parties contested the regional and national polls, including Berlusconi's new conservative People of Freedom (PDL) and Veltroni's recently formed Democratic Party (PD).

At the start of the election campaign, opinion polls gave Berlusconi's bloc a commanding lead, but it had narrowed as the election drew near.

At 80%, the final turnout appears to have been lower than in the last election, two years ago.

Berlusconi has served two terms as prime minister, last resigning in May 2006.

The tycoon, one of Italy's richest men, is the head of a business empire that spans media, advertising, insurance, food and construction and includes the successful football club AC Milan.

Veltroni is a former communist who served for seven years as mayor of Rome before taking over the leadership of the centre-left coalition led by Prodi after his government collapsed in January.

The new government will be Italy's 62nd since World War II.

PHOTO CAPTION

Italian PDL (Party for Liberty) centre-right leader Silvio Berlusconi votes at a polling station in Milan, northern Italy, April 13, 2008.

BBC