Former communist Giorgio Napolitano (80) was elected Italy’s new president on Wednesday, gaining an absolute majority in a Parliamentary vote that underlined the country’s political divisions. The election of centre-left leader Romano Prodi’s candidate was bitterly opposed by the conservatives of outgoing Prime Minister Silvio Berlusconi.

Italy’s political leaders must move quickly to resolve the country’s post-election gridlock if poll winner Romano Prodi is to kick-start the stagnant economy, analysts warned on Thursday. ”It’s not a good start for the new government,” said Bank of America economist Matthew Sharratt. Italy faced a likely two months of ”administrative paralysis” before a new government could be sworn.

Italy’s centre-left opposition on Monday ousted Prime Minister Silvio Berlusconi after an acrimonious election campaign, exit polls showed, ending the tycoon’s flamboyant five-year hold on power. While officials of Romani Prodi’s campaign refused to declare victory, supporters flocked to his campaign’s headquarters voicing both jubilation and relief.

Italy reacted coolly on Friday to threats from Libyan leader Moammar Gaddafi of further attacks on Italians if Tripoli’s historic compensation claim for decades of colonisation by Rome remains unheeded. Gaddafi said rioters who sacked the Italian consulate in Benghazi two weeks ago had wanted to kill the consul because Libyans ”hate” Italians.