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Swedish Prime Minister Stefan Lofven has announced that he will hand in his resignation as PM this morning to the Speaker of the Riksdag (Parliament), a move that will allow another individual to seek to form a majority gov't, thereby avoiding a snap general election.

  • Lofven's gov't lost a vote of no confidence in parliament last week, with the socialist Left Party - which had propped up the centre-left Social Democrat-Green minority gov't in a confidence and supply agreement - voting with the parties of the right against Lofven in protest at a liberalisation of the rental market in Sweden.
  • Two options were available to Lofven following the vote, tendering his resignation or calling a snap vote.
  • With Lofven asking the Speaker to seek to steer parties towards forming a new gov't, this reduces the prospect of a general election for now. A reformation previous gov't (see below) would be able to command a majority with C&S support from the socialist Left Party, agrarian Centre Party, and centrist Liberals, if they can all come to an agreement on a new leader.
  • If the parties cannot agree on a new leader a caretaker gov't could be appointed, or snap elections called.

Chart 1. Swedish Riksdag, Seats (Lofven Gov't)

Source: Riksdag, MNI

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