Special report: Italy's general election

    ROME, April 20 (Xinhua) -- Italian political observers chided Premier Silvio Berlusconi on Thursday for not acknowledging the election win of his adversary Romano Prodi.

    Berlusconi has not yet conceded defeat despite a ruling by Italy 's Supreme Court on Wednesday evening which confirmed Prodi's victory.

    Centre-left chief Prodi, who won by 24,755 votes in the Lower House, said on Thursday that Berlusconi's refusal to accept defeat was "sad", according to Italian News Agency ANSA.

    But he said he would continue working on the formation and agenda of a new centre-left government regardless of the stance taken by Berlusconi.

    The administration of the U.S. President George W. Bush, which had formed very strong ties with Berlusconi, also stressed that it "intended to work" with the Prodi government.

    One of Berlusconi's allies, the Union Democratic Christian (UDC) party, last night phoned Prodi to concede defeat and another, National Alliance, issued a statement which accepted the Supreme Court's decision.

    But Berlusconi's Forza Italia party and the populist Northern League were both reportedly digging in for a continuing battle, involving parliamentary election committees and possibly the regional administrative court.

    Political commentator Massimo Franco in an editorial in Italy's biggest newspaper, Corriere della Sera, expressed concern that Berlusconi would continue to contest the election outcome so he could "use a mutilated victory as a long-term weapon".

    "Berlusconi should pick up the phone and pay Prodi the ritual compliments - soon, as soon as possible, immediately even. But nothing at the moment leads us to hope this will happen," Corriere editorialist Paolo Franchi wrote.

    Observers said Berlusconi's tactics were also aimed at forcing the centre left to make concessions on some of the key institutional roles now up for grabs, which include the two parliamentary speakerships and the Italian presidency.

    Italian President Carlo Azeglio Ciampi's seven-year mandate expires in May and the 85-year-old head of state has all but ruled out staying on for a second term.

    Acclaimed Italian political scientist Giovanni Sartori underscored the importance of the closeness of the vote result for Berlusconi by saying in Corriere: "We can say that Prodi won but so has Berlusconi. Or we can say they both lost - they're all plausible answers".

    The left-leaning La Repubblica described the election result as a "victory but with nothing to celebrate".

    On Thursday, Prodi already appeared beset by squabbling allies. A battle for the Lower House speakership was pitting the Democratic Left, the largest opposition party, against the Communist Refoundation Party, the third biggest party and one which brought down Prodi's first 1996-1998 government.

    Clemente Mastella, who heads the tiny centrist, Catholic UDEUR party, also emerged discontented from talks with Prodi reportedly focusing on the Senate speakership or the possibility of two ministries.

    Meanwhile, a meeting between Prodi and Tommaso Padoa Schiopppa fuelled speculation that Italy's former representative on the European Central Bank executive board would be Italy's next economy minister.

    The choice of the internationally respected Padoa Schioppa, who is unaligned with any party, would boost confidence in Italy's ability to consolidate its deteriorating public accounts.

    The International Monetary Fund warned on Thursday that "immediate action" was essential on the accounts front to prevent the situation getting worse. Enditem