Sweden's parliament handed Social Democrat leader Stefan Lofven a second term in office yesterday, ending more than four months of deadlock after an inconclusive election that had allowed a populist party to threaten the traditional balance of power.
Sweden had looked set for a snap election until last week when Lofven agreed an historic deal with the Centre, Liberal and Green parties, bringing together parties from the centre-right and centre-left to prevent the anti-immigration Sweden Democrats from having a voice in policy.
"Ever more governments are becoming reliant on parties with an anti-democratic agenda," Lofven said after winning the vote in parliament. "But in Sweden we stand up for democracy, for equality. Sweden has chosen a different path."
The Sweden Democrats polled 17.5 percent in September's election, their support bolstered by voters' growing concerns about immigration amid a surge in shootings and gang violence in major cities.
While Sweden will now have a workable government that will keep the nationalist Sweden Democrats from any influence over policy, Lofven faces major challenges.
The deal with the Centre and Liberal parties requires Lofven, a former welder and union leader, to cut taxes and deregulate the labour and property rental market, a sharp shift to the right that is likely to alienate many of his party's traditional supporters.
It also brings together parties that are ideologically poles apart, raising the risk that the government will be short-lived.