Saddam Hussein, 69, was hung to death on Saturday in Baghdad for crimes against humanity for the killing of 148 men and boys in the Shiite village of Dujail in 1982 after an attempt was made there to assassinate him.

"The execution of Saddam Hussein is complete," Iraqi state television said in a text headline broadcast against a background of Koranic verses.

"Saddam Hussein was hanged until death ensued. A black page in the history of Iraq has been turned," it added in a second news flash, as joyful popular music filled the airwaves.

Bush : "An important milestone"

News of the former dictator’s execution triggered swift reaction in both the US and Europe.

US President George W. Bush hailed Saddam Hussein’s execution as "an important milestone" on the road to building an Iraqi democracy but warned it would not end deadly violence there.

"Saddam Hussein’s execution comes at the end of a difficult year for the Iraqi people and for our troops," Bush said in a statement released as he prepared to usher in 2007 at his Texas ranch.

"Many difficult choices and further sacrifices lie ahead. Yet the safety and security of the American people require that we not relent in ensuring that Iraq’s young democracy continues to progress," Bush said.

Australia, a US ally in its war on terror which opposes capital punishment, said it respected Iraq’s decision and called the execution a "significant moment" for the country.

"No matter what one might think about the death penalty, and the government of Iraq is aware of the Australian government’s position on capital punishment, we must also respect the right of sovereign states to pass judgement relating to crimes committed against their people, within their jurisdictions," Foreign Minister Alexander Downer said in a statement.

Europe underlines opposition to death penalty

Opposition to the death sentence was also evident in early reaction to Saddam Hussein’s hanging in Europe.

France, a staunch opponent of the death penalty as well as the US-led invasion of Iraq in 2003, called on Iraqis to work towards reconciliation and national unity after the execution on Saturday.

"France calls upon all Iraqis to look towards the future and work towards reconciliation and national unity. Now more than ever, the objective should be a return to full sovereignty and stability in Iraq," the French foreign ministry said in a statement.

"France, which like the rest of its European partners advocates the universal abolition of capital punishment, notes the execution of Saddam Hussein on Saturday," said the foreign ministry. "That decision was made by the people and the sovereign authorities of Iraq," it added.

The execution of Saddam Hussein was a "tragic event like all capital punishments" and risked fomenting a spirit of vendetta and sowing new violence in Iraq, the Vatican said on Saturday.

Earlier on Friday Italian Prime Minister Romano Prodi issued a final plea against the execution of deposed Iraqi leader Saddam Hussein, calling on "wisdom and magnanimity to prevail."

"No fault can determine one man to be the bearer of death to another. This is a principle that unites all civilisations and all religions. And it is the only principle that can allow the building of solid and lasting peace," he said.

"I issue a final and sad plea for wisdom and magnanimity to prevail", he said, according the ANSA news agency. "The decision to go ahead with the execution of Saddam Hussein fills us with horror. We had hoped that human pity and political sense would inspire wiser decisions," he added.

Britain : Saddam ’held to account’

Britain on Saturday said Saddam Hussein had been "held to account" but reiterated its opposition to the use of the death penalty.

"I welcome the fact that Saddam Hussein has been tried by an Iraqi court for at least some of the appalling crimes he committed against the Iraqi people," said Foreign Secretary Margaret Beckett. "He has now been held to account."

Britain was President. Bush’s main ally during the 2003 invasion of Iraq and still has some 7,200 troops in the country.

Saddam’s execution has put Blair’s government in a difficult position however because of its opposition to the death penalty.

"The British government does not support the use of the death penalty, in Iraq or anywhere else," Beckett said. "We advocate an end to the death penalty worldwide, regardless of the individual or the crime," Beckett said.

"We have made our position very clear to the Iraqi authorities, but we respect their decision as that of a sovereign nation. Iraq continues to face huge challenges. But now it has a democratically-elected government which represents all communities and is committed to fostering reconciliation," she said.

"We will continue to work with this government and with the Iraqi people to build security and prosperity for the future."

Human rights group condemns hanging

However US-based rights group Human Rights Watch (HRW) condemned the hanging, saying history would judge Saddam’s trial and execution "harshly."

"Saddam Hussein was responsible for horrific, widespread human rights violations, but those acts, however brutal, cannot justify his execution, a cruel and inhuman punishment," said HRW International Justice Programme director Richard Dicker.