Kenny hails Ireland's 'democratic revolution'

"The people have made their choice. This was a democratic revolution at the ballot box," he said.

Final Dáil numbers will not be decided until late on Sunday.

A bullish Mr Kenny launched a fierce attack on the outgoing Government, led by Fianna Fáil, over its poor communications and lack of openness.

"I give you my guarantee that the incoming Government is not going to leave the people in the dark about what is happening whether it is good or whether it is bad," he said.

"Paddy likes to be told."

He kicked off his looming five-year term as Taoiseach with a pledge to fight for a cheaper loan deal from the International Monetary Fund and Europe.

He plans to make the opening attack on March 4 when the European People's Party, to which Fine Gael is affiliated, meets in Helsinki. He will follow that up with a charm offensive on the European Council in Brussels the following week.

Mr Kenny, who secured the biggest single vote in the country in his Mayo constituency, said he wanted a quick resolution to talks on a new Government.

"We don't want a situation where this is going to be dragged out," Mr Kenny said.

Fine Gael is on course for 75-plus Dáil seats, just a handful shy of majority single-party Government in the 166-strong Dail.

His party is now the largest for the first time in its history, while Fianna Fáil have been routed.

Outgoing Taoiseach Brian Cowen, who has retired from politics, said he accepted responsibility for decisions taken in Government.

"From my point of view as Taoiseach and as minister in the past I take full responsibility. I've never quibbled or suggested otherwise," Mr Cowen said.

Fianna Fáil leader Micheál Martin put on a brave face and said he believed that Fine Gael had managed to secure support from floating voters.

"There's a soft vote there for Fine Gael and Labour, just as there was for us for years," he said.

"I tend to be optimistic by nature so I look at this as an opportunity as well."

The party's biggest casualty was outgoing Tánaiste Mary Coughlan who was punished by voters in Donegal South-West as they opted to support an Independent candidate in her own backyard.

Hers was one of several dynasties brought to a dramatic end and minutes from finding out her fate she refused to give in, before slipping quietly from the count centre in Donegal town.

"It's been a very difficult day for all of my colleagues, many of whom have lost their seats," she said.

Other big names to suffer included ministers Mary Hanafin, Barry Andrews and Conor Lenihan, himself from a powerful Fianna Fáil family and brother of the outgoing Finance Minister Brian Lenihan who narrowly retained his own seat.

The Haughey name will also be absent from the Dáil for the first time in 54 years.

Former coalition partners the Green Party were wiped out. None of their TDs - two of whom held Cabinet posts up until a few weeks ago - were brought back to the Dáil.

Leader John Gormley had always faced a tough battle in Dublin South East and blamed his failure on being in a Government which made savage cuts.

He said: "We have suffered a major defeat, but the party will regroup, we will continue. We're a party with a set of beliefs and values and a vision for the future.

"We have great people here. We're going to rebuild this party."

Labour saw one of its best ever performances with the prospect of supporting a coalition.

"That is the most likely outcome, there's no doubt about that," leader Eamon Gilmore said.

Sinn Féin was on course to double its seats with party president Gerry Adams topping the poll in Louth after giving up his Westminster seat for West Belfast.

Their success in the south was extended with seats right around the border including two TDs in Donegal.

Further left-wing appeal came from the United Left Alliance - a collection of the Socialist Party and the self-styled People Before Profit.

Mr Kenny, who took control of Fine Gael after it was crushed in the 2002 election - flew by helicopter from his western constituency to celebrations in Dublin's Burlington Hotel.

He said he bore no grudges to anyone over a failed leadership heave in June 2010 and vowed to lead a strong and stable Government.

On the IMF/EU bailout, Mr Kenny repeated his mantra that it was a bad deal for Ireland and a bad deal for Europe.

"We are not going to cry the poor mouth, other than to say the reality of this challenge is too much. I don't want to talk about difficulties, I look for co-operation, consensus and support across Europe," he said.

Mr Kenny said by 2016 - the centenary of Ireland's Easter Rising - he wanted to make Ireland the best for business, for raising a family and to grow old with dignity.

"It's not about being popular, it's about being effective," he said.

"We want to restore our pride at home and abroad. Our country is back in business."

Mr Kenny also pledged to probe deep into the heart of the banking crisis which has left the taxpayer saddled with crippling debts which some analysts believe could ultimately cost closer to €200bn.

"We do need to find exactly what went wrong here, who benefited from this and where decisions were made," he said.

"This is bridging the gap between government and people - that chasm there was very bad for democracy."