| 26 February 2024, Monday |

Swedish PM Lofven ousted by parliament in no-confidence vote

Swedish centre-left Prime Minister Stefan Lofven was ousted in a no-confidence vote in parliament on Monday, leaving him to decide whether to call a snap election or resign to hand the speaker the job of finding a new government.

Lofven, who was defeated after nearly seven years in power over a plan to ease rent controls for new-build apartments, has a week to reach his decision. If he opts for a snap election, it would be Sweden’s first since 1958.

With parliament deadlocked and opinion polls showing the centre-right and centre-left blocs evenly balanced, the political crisis may not be resolved quickly. But economists do not expect the political uncertainty to weigh on the economy because of the strict fiscal rules under which Sweden operates.

“The government now has a week to decide and we will hold talks with our cooperation parties,” Lovfen told a news conference after the vote.

“It is what is best for the country that is important. We will work as fast as we can.”

The nationalist Sweden Democrats called the vote after the Left Party withdrew support for the led by Lofven’s Social Democrats over the rent control reforms.

  • Reuters