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Free AccessLeft Threatens No Confidence Vote, But Ouster Of PM Lofven Unlikely
Sweden's Prime Minister Stefan Lofven is facing a potential vote of no confidence in the country's parliament, but given that the main opposition seems likely to abstain it is unlikely that the vote will lead to the PM's ouster.
- The socialist Left Party - one of the three that support's Lofven's Social Democrat-Green coalition in a confidence and supply agreement - has stated that it will submit the motion of no confidence against Lofven due to his gov'ts plans to remove rent controls on newly built properties.
- If the Left Party was able to rely on the support of all opposition MPs (from the centre-right Moderates, social conservative Christian Democrats, and right-wing nationalist Sweden Democrats) it would be able to secure the 175 votes required for a majority.
- However, the Moderates may well hold back on ousting Lofven given that the party is largely in favour of the market-liberalising reforms proposed by the gov't. Without their support the no confidence vote would not succeed.
- For the Left they could find themselves in a difficult position, with the only support for the no confidence motion coming from the Sweden Democrats - a party the Left have stated they would never work with.
Source: Swedish Parliament, MNI
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.