Conservative leader Silvio Berlusconi faces a laundry list of problems after avenging his loss at the polls two years ago to win a third stint as Italy’s premier.

His victory in elections held Sunday and Monday marks a remarkable return to power for the colorful billionaire, who capitalized on discontent over the nation’s stagnating economy and the unpopularity of the government led by Romano Prodi _ the collapse of which resulted in the early elections.

“I’m moved, I feel a great responsibility,” Berlusconi, 71, said Monday evening in a phone call to RAI public television.

State radio quoted a Berlusconi ally, right-wing leader Gianfranco Fini, predicting Berlusconi’s forces would be able to quickly assemble a Cabinet once the media mogul gets the formal nod by Italy’s president to form a government.

He won’t have it easy. The problems awaiting him range from cleaning piles of trash from the streets of Naples _ which he has indicated will be his top priority _ to improving an economy that has underperformed the rest of the euro zone for years.

Berlusconi will also need to make structural reforms that economists say are needed, such as streamlining the decision-making progress, and cut the costs associated with politics. A reform of the much-maligned current election law is also on the agenda.

Berlusconi won strong victories in both houses of Parliament, despite a strong final sprint by his main rival, Walter Veltroni.

Still to be counted was the vote of Italians overseas, expected later on Tuesday, and that bloc of voters, largely considered to be conservative, could swell Berlusconi’s margin even more.

In the 315-member Senate, Berlusconi was projected to control 167 seats to Veltroni’s 137.

In the lower house, Berlusconi’s conservative bloc was leading by a margin of 7 percent, or 46 percent of the vote to 39 percent.

In his postelection comments, Berlusconi said he was open to working with the opposition, and pledged to fight tax evasion, reform justice and reduce public debt. Berlusconi said he would reduce the number of Cabinet ministers to 12, including four women.

Helping propel Berlusconi to resounding victory was his ally Umberto Bossi, the volatile leader of the anti-immigrant Northern League who allied his forces based in the affluent north in an election pact. Roberto Maroni, the League’s No. 2, pledged in comments on state radio Tuesday that his forces would push for a crackdown immigrant.

“Those who have a job stay. Those who don’t, go,” Maroni said of Italy’s growing immigrant population.

This was Berlusconi’s fifth consecutive national campaign since 1994, when he stepped into politics from his media empire, currently estimated at $9.4 billion. He has fended off challenges to his leadership by his conservative allies, survived conflict of interests accusations and criminal trials.

During his last term he served a record-setting five years, until his 2006 defeat. During that term, Berlusconi made notable international gaffes and unpopular decisions, such as sending 3,000 troops to Iraq over the protests of thousands of Italians in the streets. The contingent has since been withdrawn.

This time he has ruled out sending new troops to Iraq, but his friendship with the United States is not in doubt.

Berlusconi once said that he agreed with the United States regardless of Washington’s position. He calls President Bush a friend, and his return to power is likely to make relations with Washington warmer, no matter who becomes the next American president.

The International Monetary Fund forecasts that the Italian economy, the world’s seventh largest, will grow 0.3 percent this year, compared with a 1.4 percent average growth for the 15-country euro area.

On Monday, Berlusconi said he would make the first foreign visit of his third term to Israel, to mark the Mideast country’s 60th anniversary. It would be, he said, a show of support for “the only real democracy in the Middle East.”

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Associated Press Writer Ariel David in Rome contributed to this report.