Swedish Government Collapses After PM Loses No-Confidence Vote
By Dominic Chopping
STOCKHOLM--Sweden's government collapsed Monday after Prime
Minister Stefan Lofven lost a no-confidence vote, leaving him with
a choice of either resigning or calling a snap election.
Mr. Lofven last week lost the backing of the country's Left
Party --whose support he replies upon to govern-- over proposals to
scrap controlled rents in newbuild housing.
The proposals would allow landlords of newly built housing to
charge market rates to tenants, sparking the ire of the Left Party
who want to maintain the current system of rents set through
collective bargaining agreements between tenant associations and
Mr. Lofven's centre-left minority government was formed in early
2019 after four months of political deadlock following a 2018
election that produced no clear winner.
Mr. Lofven's Social Democratic Party formed a coalition with the
Green Party, with parliamentary backing from the Centre and Liberal
parties, after signing a joint agreement which set out a policy
framework and made concessions to the Liberal and Centre parties in
return for them abstaining from voting against his re-election.
One of the concessions was a promise to allow landlords to set
rents, a draft of which was proposed earlier this month, and which
triggered the Left party to withdraw its support.
The Prime Minister can now either resign and let the speaker
task parties with trying to form a new government, or call a snap
General elections scheduled for September next year will go
ahead as planned either way. Mr. Lofven has a week to decide but
has called a press conference for 0930 GMT on Monday.
Write to Dominic Chopping at email@example.com
(END) Dow Jones Newswires
June 21, 2021 05:10 ET (09:10 GMT)
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