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Sweden election: PM Frederik Reinfeldt concedes defeat Sweden election: Social Democrats rule out far-right pact
(about 1 hour later)
Swedish Prime Minister Fredrik Reinfeldt has conceded defeat in the general election, saying he will step down on Monday as PM and party leader. The leader of Sweden's Social Democrats says he will try to form a government after their election win, but will not work with the far right.
Partial results show the opposition Social Democrats are set to return to power, but with no clear majority. Partial results show Stefan Lofven's opposition party are set to return to power, but with no clear majority.
They give the centre-left bloc 43.7%, ahead of the 39.1% for Mr Reinfeldt's ruling centre-right coalition. They give the centre-left bloc 43.7%, ahead of the 39.3% for PM Fredrik Reinfeldt's Moderate Party. The far-right Sweden Democrats were at 13%.
The new coalition may now have to rely on support from the far-right anti-immigration Sweden Democrats. Mr Reinfeldt conceded defeat and said he will step down as PM on Monday.
"The centre-left has more seats [in parliament] than our alliance," Mr Reinfeldt told his supporters. "The centre-left has more seats [in parliament] than our alliance," Mr Reinfeldt told his supporters. "So tomorrow I am going to hand in mine and my government's resignation."
"So tomorrow I am going to hand in mine and my government's resignation," he said. He also confirmed that he would step down as leader of the conservative Moderate Party.
A Social Democrats win would be a return to normality in Sweden after 80 years. They have not been in opposition for so long since first taking power in 1920. Mr Lofven said the country needed a "new direction" and faced major challenges after eight years of centre-right rule.
Polling stations opened at 06:00 GMT and closed at 18:00 GMT. "We are in a serious situation. We have thousands of people unemployed, We have school results that are declining more than in any other OECD [Organisation for Economic Co-operation and Development] country," he said.
Another coalition? Since coming to power in 2006, Mr Reinfeldt's coalition government has cut income and corporate taxes, abolished a tax on wealth and trimmed welfare benefits.
Since coming to power, Mr Reinfeldt's coalition government has cut income and corporate taxes, abolished a tax on wealth and trimmed welfare benefits.
It has also privatised several state-owned companies, including the maker of Absolut vodka.It has also privatised several state-owned companies, including the maker of Absolut vodka.
After voting in Stockholm, Social Democrat leader Stefan Lofven said he felt good, adding: "We have focused on our main issues - jobs, schools welfare." The results signal a return to normality in Swedish politics. The Social Democrats have not been in opposition for so long since first taking power in 1920.
Mr Reinfeldt, who voted in another part of the city, spoke of a "formidable campaign". With more than 99% of votes counted, the Social Democrats, Greens and Left parties look set to win around 159 seats in the 349-seat parliament, short of a majority.
The anti-immigration Sweden Democrats, who entered parliament for the first time in 2010, are alone in opposing the country's liberal immigration policy, and could hold the balance of power. Mr Lofven told supporters in Stockholm that he would now explore the possibilities of forming a government, but would not cooperate with the Sweden Democrats.
A projection after a partial vote count on Sunday night showed them becoming the third largest party, gaining 13% of the vote. Far-right kingmaker?
"We're the absolute kingmaker in parliament now," Jimmie Aakesson, leader of the far-right party, said afterwards. The far-right anti-immigration party are set to become the country's third largest party.
Correspondents say they could hold the balance of power.
"We're the absolute kingmaker in parliament now," Jimmie Aakesson, leader of the far-right party, told reporters.
"You have to be able to govern this country for four years," Mr Aakesson told broadcaster SVT, "and it's going to be hard if they are not prepared to talk to us or listen to us."
But Mr Lofven insisted he would not turn to the far-right party. "We will make sure they don't get that kingmaker role," he told supporters.
The Sweden Democrats, who entered parliament for the first time in 2010, are alone in opposing the country's liberal immigration policy.
Sweden this year expects up to 80,000 asylum-seekers from Syria, Eritrea, Somalia, Afghanistan, Iraq and other countries - the highest number since 1992.Sweden this year expects up to 80,000 asylum-seekers from Syria, Eritrea, Somalia, Afghanistan, Iraq and other countries - the highest number since 1992.
Meanwhile, results confirm that a small feminist party who had hoped to enter parliament failed to reach the 4% threshold.