Political uncertainty clouded Italy's future as Premier Silvio Berlusconi refused to concede defeat to center-left leader Romano Prodi in one of the closest elections in the country's recent history.

Italian Premier Silvio Berlusconi gestures during a press conference at Chigi palace, the Premier's office, in Rome, Tuesday, April 11, 2006. Berlusconi suggested Tuesday that Italy could follow Germany's lead and create a 'grand coalition'' if final results show neither side has control of both houses of parliament. [AP]

Berlusconi, alleging irregularities, demanded a recount, a process that could take weeks. "Nobody now can say they have won," he said Tuesday.

Prodi emerged the winner of the election by a razor-thin margin and promised to form a strong government able to run a deeply divided country mired in economic stagnation.

He told Europe 1 radio on Wednesday that discussions would get under way in the next few days to select members of his Cabinet and parliament would soon choose a new president who will give his coalition the mandate to govern. He said a day earlier he was not worried by a recount, describing Berlusconi's complaints as "out of line."

However, even if the result is confirmed, long-term prospects of a stable government under Prodi look problematic. Many fear a return of the chaos that has characterized recent Italian history. There have been 60 governments in about as many years since the end of World War II.

The two candidates' comments capped a day of confusion since millions of Italians went to cast ballots Sunday and Monday at the end of bitter campaign.

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