Abstract

Subject Sweden's new government. Significance On January 16, Sweden’s Social Democrats formed a minority coalition with the Green Party, with support from the centre-right Liberal and Centre parties. It also has reluctant support from the Left party, which may not play any role in policy. The agreement marks the end of four months of cross-party negotiations after September’s general election delivered a hung parliament. The left-right alliance attempts to prevent the populist and anti-immigrant Sweden Democrats, which won 17.5% in the election, from entering government. The coalition parties could eventually face a no-confidence vote tabled by the Left party over their support for centre-right policies, while a failure to tackle crime and immigration will serve to strengthen the Sweden Democrats' profile in opposition. Impacts The fragile nature of the government could be a deterrent for future investors in the Swedish economy. The UK departure from the EU and the perceived strengthening of the German-Franco alliance may increase support for Sweden’s own EU exit. Sweden will stop selling weapons to 'undemocratic countries' -- a reference to Saudi Arabia.

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