Swedish Government a Parliament Minority After Elections

Sweden’s center-left Social Democrat leader Stefan Lofven emerged as victor in Sunday’s general election after a voter backlash against tax cuts and trimmed welfare by a center-right government, but he fell short of a parliamentary majority.

The Nordic region’s biggest economy and one of the few star performers in Europe now faces a weak minority government with a possible political impasse as the anti-immigrant far right emerged as the third biggest party to hold the balance of power.

Lofven’s Social Democrats and two other opposition parties, the Greens and Left, garnered 43.7 percent of the vote, against 39.3 percent for Prime Minister Fredrik Reinfeldt’s coalition. That means a government with limited clout to pass bills.

Lofven told supporters he would begin coalition talks with the Greens, but also reach out to other parties.

“We are in serious situation. We have thousands of people unemployed, We have school results that are declining more than in any other OECD country,” Lofven said. “There is something that is breaking. Now Sweden has answered that we need a change.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza