Italy election: Early vote count points to impasse 25 February 2013 Last updated at 19:04 Early results from Italy's election suggest the houses of parliament may split between left and right, causing new anxiety in the eurozone. Projections suggest Pier Luigi Bersani's centre-left bloc has a narrow lead in the lower house while Silvio Berlusconi's centre-right is ahead in the powerful Senate. A protest movement led by comedian Beppe Grillo surged into third place. The election comes amid a deep recession and tough austerity measures. It marks a return to full-blown democracy for Italians after the technocratic government of Mario Monti whose attempts to reduce spending caused widespread public resentment. Milan's stock market soared nearly 4% when exit polls suggested a clear Bersani victory - but lost nearly all of its gains when projections began to show Mr Berlusconi winning a sizeable vote. Italy's 10-year borrowing cost fell but then rose again to close slightly higher at 4.49%. It was market pressure, with a borrowing cost of well over 6%, that forced Mr Berlusconi to resign as prime minister in late 2011. Correspondents say Italy's EU partners and the financial markets want to see a stable outcome to the election, with a commitment to reform and debt-reduction. The BBC's Europe editor, Gavin Hewitt, says Brussels and Berlin would like to see Mr Bersani form a governing coalition with Mr Monti. They fear that an uncertain outcome could lead to Greek-style paralysis in the eurozone's third largest economy, he says. A leading figure in Mr Bersani's party has said a new election may need to be called in order to form a stable government. No stable government As the official count got under way, exit polls forecast 34.5% for Mr Bersani's centre-left bloc in the lower house (Chamber of Deputies). Mr Berlusconi's bloc was being given 29%, Mr Grillo's Five Star Movement 19% and the centrist list led by Mario Monti 9.5%. Hours later, a Piepoli Institute projection for the state broadcaster Rai cut Mr Bersani's lead in the lower house to just 0.5% (29.1% to 28.6%). An IPR projection had the Bersani bloc 1% ahead. Mr Bersani was also projected initially to win a majority in the Senate, where seats are decided region by region. However, later projections suggested Mr Berlusconi's bloc was ahead in the key swing regions. Control of both the lower and upper houses of parliament is needed in order to govern. Mr Bersani has pledged to continue with Mr Monti's reforms but suggests current European policy needs to do more to promote growth and jobs. The election was called two months ahead of schedule, after Mr Berlusconi's party withdrew its support for Mr Monti's government. Speaking on Italian public TV, Mr Bersani's economics spokesman, Stefano Fassina, said: "The scenario from the projections we have seen so far suggests there will be no stable government and we would need to return to the polls."