Sweden to get new coalition

SWEDEN: Fredrik Reinfeldt, Sweden's next prime minister, met key allies yesterday to begin talks on forming a coalition government…

SWEDEN: Fredrik Reinfeldt, Sweden's next prime minister, met key allies yesterday to begin talks on forming a coalition government after he ended 12 years of Social Democrat rule by pledging to cut taxes and to create jobs.

Mr Reinfeldt (41) said the historic victory by his four-party alliance in Sunday's election had created "a new Sweden".

The Moderate Party leader will take over from Göran Persson (57) who in his 10 years as prime minister oversaw strong economic growth but failed to overcome voter fatigue and accusations that he had lost touch with ordinary people.

Mr Reinfeldt told reporters the four alliance partners would need time before deciding ministerial posts, adding that the partners had until October 6th to present a cabinet to parliament.

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Mr Persson said on Sunday he would step down as Social Democrat leader. He was expected to hand his formal resignation as prime minister to parliamentary speaker Björn von Sydow late yesterday. Mr von Sydow will then ask Mr Reinfeldt to form a government.

Aftonbladet, Sweden's biggest-selling daily, suggested Mr Reinfeldt's Moderates would take almost half the cabinet posts, including finance, labour, justice and education.

The alliance won 48.1 per cent of votes against 46.2 per cent for Mr Persson and his allies, giving it 178 seats in the 349-seat parliament, a slim majority of seven seats.

Mr Persson described the election defeat as a disappointment, adding: "I don't think it's fair because when I leave today, I leave a country and a government that is in not only good shape, [ but] is in a shape that all other governments in Europe envy."

Analysts said he had failed to focus on job growth, his election campaign never seemed to get going and his performance in election debates was poor.