A staunch U.S. ally, Berlusconi, 69, founded a business empire that expanded to include Italy's main private TV networks, the Milan soccer team, as well as publishing, advertising and insurance interests.

He was battling to capture his third premiership with a center-right bloc ¡ª an often squabbling coalition of his Forza Italia party, the former neo-fascist National Alliance, pro- Vatican forces and the anti-immigrant Northern League.

Prodi, 66, was making his comeback bid with a potentially unwieldy coalition of moderate Christian Democrats, Greens, liberals, former Communists and Communists.

One potential issue ¡ª Iraq ¡ª was largely deflated before the campaign began, when Berlusconi announced that Italy's troops there would be withdrawn by year's end.

Berlusconi, who won the premiership in 1994 and 2001, had strongly supported President Bush despite fierce opposition among Italians against the war. Prodi has said he would bring the troops home as soon as possible, security conditions permitting.

The ailing economy was at center stage, although neither candidate offered any bold ideas for its revival.

Berlusconi promised to abolish a homeowner's property tax. Prodi said he would revive an inheritance tax abolished by Berlusconi, but only for the richest. He also promised to cut payroll taxes to try to spur hiring.

Critics contended that Berlusconi, instead of helping the economy, used his comfortable majority in Parliament to push through laws to protect his business interests and to help him in his years of judicial woes. Berlusconi contends the laws benefit all Italians and that he has been the victim of left-leaning prosecutors.

Berlusconi depicted Prodi as a front-man for Communists in a campaign to damage Italian democracy.

Italians were voting under a proportional system, thanks to a law pushed through by Berlusconi's government to increase the chances that his smaller allies would win seats in Parliament.

Hours before the polls opened Sunday, three gasoline bombs were hurled at a polling station in the northeastern town of Vittorio Veneto, and fliers found at the scene denounced both coalitions, police said. No one was hurt.