The center-right coalition, which includes League - also known as the Northern League - along with former Prime Minister Silvio Berlusconi's Forza Italia and the neo-fascist Brothers of Italy, is likely to form the largest bloc in both houses of the country's parliament, a combined share of votes totaling over 37%.
Lega's leader Matteo Salvini immediately called for a right-wing coalition government, saying "the team with which to reason and govern is the center-right one...the center-right coalition has won".
Berlusconi, who said that he met with Salvini on Monday, said he believed that the coalition would be able to find the necessary majority in parliament "to govern Italy and restart our country".
Rival populist leaders fought on Monday for the right to govern Italy after its general election as the leader of the defeated ruling centre-left party resigned with a warning about a "wind of extremism".
Led by Luigi Di Maio, the populist 5-Star Movement came out as the main victor of Sunday's poll, with roughly 31% of the votes.
Former Prime Minister Matteo Renzi's Democratic Party crumbled under the stiff anti-establishment mood in the country, gaining only 20% of the votes - the party's worst result since it was founded in 2007.
The Milan stock exchange closed down 0.4 percent, with the Mediaset media company of one of the election's biggest losers, three-time Premier Silvio Berlusconi, down 5.5 percent. He sought to assure financial markets that his leadership wouldn't be anything to fear, even as he reaffirmed his belief that Italy's membership in the euro common currency was a mistake.
Fast forward 24 years to the 2018 election, and not only is Berlusconi still FI's leader (and indeed owner), but, together with a renewed Lega, he has again managed to assemble an electoral coalition that could end up in government. "It won 17.4% of the vote compared with Forza Italia's 14%".
The 5-Stars had a remarkably strong showing in the south, which has always been a stronghold of the centre-right and Forza Italia. The Democratic Party, which suffered a split in its ranks a few months before the election, followed the pattern of many European social democratic parties by enduring declining support. Both were regarded, only several years ago, as fringe parties.
"And there are two catastrophic losers: Berlusconi, the old man on his last lap, and his young heir (Democratic Party leader) Matteo Renzi".
Having gained around 32% of the national vote, M5s has confirmed its position as the most successful new party in the history of Western Europe (going from 0 to 25% between 2009 and 2013, and having grown of a further 7% in the following five years).
A nightmare scenario for the European Union would be a combination of the 5-Star Movement and the League, which together would command a majority of seats in Parliament.
The Eurosceptic, anti-establishment Five Star Movement was the biggest party with nearly a third of the vote.
Parliament will meet for the first time on March 23 and President Sergio Mattarella is not expected to open formal talks on forming a government until early April. La Repubblica newspaper described its failure to win a fifth of the votes as a psychological blow.
The M5S has proposed a universal basic income and a tax cut, while the League wants to help Italian businesses and deport hundreds of thousands of migrants.
Pending the outcome of government coalition talks, the 5-Star Movement could set Italy's European Union policy for years to come.
"There are definitely policy differences between the Five Star Movement and the Lega (League) and also some of the other populist movements on the right", he said. Recall last week we warned that any safe-haven seeking on market uncertainty over European politics could benefit the Pound.