Italy heading for hung parliament as populist parties make big gains

Issues in the campaign included relationship with the EU

European political risk has risen as projections for the Italian election result point to deadlock, following a surge in support for the eurosceptic Five Star Movement and anti-immigration Northern League.

With votes still being counted, ex-Prime Minister Silvio Berlusconi's centre right coalition looks set to win the most seats in the lower house of parliament at around 248-268, but this is well below the 316 needed for a majority. However, the Five Star Movement appears likely to be Italy's biggest single party, with 32% of the vote. There was also a surge in support for the Northern League, led by  Matteo Salvini, which is on track to beat Forza Italia and gain 17% of the vote to become the main conservative party in Italy. But the governing Democratic Party - headed by former pri...