SWEDEN’S Social Democratic party, which on Sunday ended its longest spell in opposition in a century, faces a weak minority government after the far-right Sweden Democrats emerged as the third-largest party.

In his first speech after the election result, the incoming prime minister, Stefan Lofven, a former welder who built his career in the country’s union movement, insisted the new government would be functional.

“I am ready to form a workable government for Sweden,” he said. “The Swedish people have turned their backs against tax cuts and privatisations. The Swedish people demanded change.”

Anti-immigrant far-right holds balance of power as Stefan Lofven prepares for coalition talks with Greens and other parties

Mariam Ismail Egal, a Social Democrat campaigner in Malmo, where 40 per cent of people are from an immigrant background, said many in the city were “disappointed and frightened” that the Sweden Democrats had doubled their vote to more than 13 per cent. “I think we are becoming more like France, and I think we will see a lot of conflict and division in our society,” she said.

Jimmie Akesson, the party’s leader, was jubilant as preliminary vote counts came in. “We’re the absolute kingmaker now,” he said. “They can’t ignore us the way they have ignored us over the past four years.”

With more than 80 per cent of the vote counted, the three main left-of-centre parties had won 43.7 per cent, comfortably more than the centre-right Alliance’s 35.3 per cent, but still far short of a majority.

Lofven, who had not previously been elected to public office, struggled against more experienced opponents in the country’s eight televised election debates. But his years of backroom union negotiations will be invaluable in forming a government strong enough get the country’s budget through parliament in November.

In his victory speech, Lofven ruled out any cooperation with the Sweden Democrats, which, despite the efforts of Akesson to rebrand it as a non-racist party, has its roots in the Swedish Nazi movement.

“Remember, 87 per cent of Sweden didn’t vote for them,” he said to the cheers of the activists and journalists gathered at the victory party. “Even if the Sweden Democrats had even higher numbers, we would not cooperate.”

Lofven hinted instead at deals with the two smaller parties in the country’s right-wing alliance, whose combined 11.5 per cent share would bring them close to a majority. “I want to say that the hand is extended to other democratic parties,” he said. “Our country is too small for conflict.”

Lofven’s bargaining position has been strengthened by his party’s unexpectedly strong result. The Social Democrats won 31.2 per cent of the vote, higher than almost all surveys had suggested during the campaign, and ahead of what the party polled in 2010.

Its most likely coalition partners, the Green party, however, took just 6.8 per cent of the vote, after polling above 10% for most of the campaign.

Fredrik Reinfeldt, Sweden’s outgoing prime minister, said he would step down as PM and leader of the Moderate party. “The election is over,” he said. “Sweden has made its decision. All these years under the Alliance have been fantastic.”

Reinfeldt has been lauded internationally for the skill with which his government steered Sweden through the global economic crisis over its eight years in power. But within Sweden, it has faced complaints of falling standards of public services, particularly those operated by private companies under the country’s welfare reforms.

Reinfeldt’s minority government benefited from the tacit support of the far right, whose MPs voted in favour of an overwhelming majority of their measures. But it has always refused any formal cooperation. Indeed, Reinfeldt began this year’s election campaign with a call to Swedes to “open your hearts” to greater numbers of refugees.

—By arrangement with the Guardian

Published in Dawn, September 17th, 2014