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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.
SWEDEN
Stefan Lovfen has been reinstated as Sweden's prime minister following a tight vote in parliament, with the previous minority coalition of Lofven's centre-left Social Democrats and the environmentalist Greens leading an administration supported in a confidence and supply agreement by the agrarian Centre Party and the socialist Left Party.
- Sweden: confidence vote on PM Stefan Lofven: Confidence: 116, No confidence: 173, Abstain: 60
- In order to block Lofven from re-taking office, the opposition would have needed 50% +1 of the votes in the Riksdag (parliament), a total of 175 out of 349. As such, the opposition fell two votes short.
- All 116 Social Democrat and Greens voted in favour of Lofven, while the Centre Party, Left Party, and two independent MPs abstained. The centre-right Moderates, social conservative Christian Democrats, libertarian Liberals, and right-wing populist Sweden Democrats all voted against Lofven's government.
- Swedish politics has been through a tumultuous fortnight, with the Left initially stating they would bring a no confidence vote against Lofven due to his plans to liberalise rent controls on new housing. In the event, the Sweden Democrats put forward the motion, which succeeded and resulted in Lofven's ouster.
- No other party leaders were able to put together a majority coalition, and Lofven adviser the Speaker of the Riksdag against calling a snap election. Lofven was able to secure the abstentions of two of the three parties that were in a C&S agreement with his previous gov't (the Liberals joined the opposition), and crucially also the abstentions of the two independents: one formerly of the Left, the other previously a Liberal.
Chart 1. Swedish Parliament, Seats
Source: Riksdag, MNI. N.b. Centre, Left Parties and independents support gov't in confidence and supply agreement.
- With the votes of the government, the C&S parties and independents combined, the gov't has an overall majority of two seats. This will make policy making extremely difficult, with pairs of members able to derail legislation by threatening to withhold their votes.
- Lofven is due to present his new Cabinet on Friday.
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.
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