| 7.7°C Dublin

Italy's stalemate hits eurozone

ITALY'S stalemate election may have a knock-on effect on the European economy.

Voters in the eurozone's third-largest economy may have to return to the polls.

Neither right nor left won an outright majority and the balance of power is held by former comedian Beppe Grillo's Five Star Movement (M5S).

Eurozone leaders fear a split parliament could reignite the eurozone debt crisis. Wall Street and Asian markets fell sharply overnight, while European markets opened down.

Italy's centre-left coalition will win a majority in the lower house of parliament, but the upper house will be deadlocked, the Interior Ministry said after almost all votes were counted.