Italian centre-left coalition leader Romano Prodi has rejected a centre-right "grand coalition" after his razon-thin parliamentary election victory, according to Italian news agency ANSA.

"There's no need for a grand coalition," he said on Wednesday, adding that "our victory was clear and recognized by all."

Prodi's coalition has a majority of 64 seats in the lower house and two in the Senate.

His rival, Italian current Premier Silvio Berlusconi has yet to concede defeat and he proposed on Tuesday a cross-party alliance of the kind forged in Germany.

Prodi has insisted his broad coalition including Communists and centrist Catholics is cohesive enough to last a five-year legislature, as Berlusconi's did.

He said he was "speaking for the whole coalition" in rejecting the centre-right overture.

Prodi, who served as premier from 1996 to 1998 before a term as European Commission chief, appeared eager to start implementing the platform he spent months thrashing out with his allies.

He said the priority was to jumpstart the stagnant Italian economy with a five-point cut in payroll costs.

In other points, Prodi said Italy would pull out of Iraq according to a timetable agreed with the Iraqi government and replace its troops with a civilian reconstruction team.

Prodi's victory is expected to be ratified before the end of the week, after disputed ballots are checked.

Source: Xinhua