By Stephen Brown
ROME (Reuters) - Conservative billionaire Silvio Berlusconiwas on course on Monday to win Italy's parliamentary electionand secure a third term as prime minister, according to exitpolls.
Exit polls have not always proved reliable in Italy. Onesurvey for Sky TV after two days of voting ended gaveBerlusconi a 2 percentage-point lead over centre-left rivalWalter Veltroni in the lower house and a 3-point lead in theupper house.
A second poll for state television also put the 71-year-oldmedia magnate ahead in both chambers. The exit polls have amargin of error of two percent.
Berlusconi has vowed to cut Italy's public debt, trim taxesand liberalise the highly regulated services sector. But manyItalians fear political instability will prevent the nextgovernment reviving an economy on the brink of recession.
"The winner of the elections will have to clear up the messthat the country's in and get the economy moving again, andnone of them seem to have the imagination, vitality or themajority to do it very well," said politics professor JamesWalston.
Exit polls failed to predict accurately the outcome of thelast parliamentary election in 2006 and do not indicate thefinal balance of power in the Senate, where seats arecalculated on a regional rather than national basis.
A clearer picture should emerge from pollsters' projectionsfrom 5 p.m. (4:00 p.m. British time) of who will lead Italy's62nd government since World War Two and guide the fourthlargest economy in the European Union.
THIRD TERM
Berlusconi, who was prime minister for seven months fromApril 1994 and from 2001-2006, had been forecast by opinionpolls to secure a majority in the lower house. The Senate racewas always bound to be closer due to the complex voting system.
Romano Prodi, who beat Berlusconi in 2006, resigned inJanuary 20 months into his five-year term after his narrowmajority evaporated and his coalition collapsed.
Prodi's successor as leader of the Democratic Party, formerRome Mayor Veltroni, who is 52, put up a stiff challenge toBerlusconi, who dominates Italy's media via his ownership ofprivate broadcaster, Mediaset.
Some of Italy's 47 million voters complained there waslittle to choose from between the two platforms.
Both pledged to reduce public debt -- the third highest inthe world in absolute terms -- but also cut taxes to boostspending and growth, which the International Monetary Fundexpects to slow to just 0.3 percent this year.
Up to a third of voters were undecided until the lastminute and the nation went to the urns in a despondent mood,tired of the squabbling politicians and chronic politicalinstability.
"I voted, but without any enthusiasm," said Massimo Rossi,47, sipping a cappuccino in a Rome cafe. "Whether Veltroni orBerlusconi wins, I see little changing in this country. I havelittle hope in Italian politics."
The flamboyant Berlusconi, who also owns AC Milan soccerclub, stumbled at times in the campaign, arguing with the hostof a TV debate, saying the left had "no taste in women" andinsulting soccer player Francesco Totti for backing a rival.
(Editing by Timothy Heritage)
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