swissinfo - Swedish opposition wins election - as Europe starts to replace its old guard entrenched politicians

Fredrik Reinfeldt
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Swedish opposition wins election - as Europe starts to replace its old guard entrenched politicians

"We campaigned as the New Moderates, we won as the New Moderates and together with our alliance partners we will rule Sweden as the New Moderates," Reinfeldt told supporters. The coalition was set on Monday to start discussing the distribution of seats in the government, although the cabinet will not be presented to parliament until October 6. The result was a victory for the alliance's pledges to stimulate job growth by fine-tuning, but not dismantling, the social welfare system brought in by the Social Democrats who have governed Sweden for six of the last seven decades. Swedes pay high taxes but the welfare state gives them generous benefits. Reinfeldt says the downside is the Swedish will to work has been sapped by excessive benefits.

The election was closely watched by other European Union governments facing the need for welfare reform because of ageing populations and creaking pension and healthcare systems."The alliance has redrawn the map," said the liberal daily Dagens Nyheter. "Sweden is today waking up to a new political landscape," said Aftonbladet, the biggest selling daily.He said Sweden's real unemployment rate was about 20 percent, almost four times the official level, and that the welfare system required changes to preserve it for the future, a theme of reform across Europe.

German Chancellor Angela Merkel and her conservative-Social Democrat coalition have been trying to fix a troubled healthcare system, cut corporate taxes and tweak jobless benefits. In Britain, Prime Minister Tony Blair has reformed the pension system, while Denmark has cut taxes and launched more flexible labour market rules.

Reinfeldt intends to sell off some 200 billion Swedish crowns ($27.6 billion) worth of state-owned shares over four years. His privatisation push could include government holdings in Nordea bank, telecoms company TeliaSonera and airline SAS. Reinfeldt favours Sweden joining NATO if there is broad agreement on the issue. He wants Sweden more involved in the EU but has no plans to hold a referendum on the euro currency in the next four years.