Sweden votes for welfare cuts as centre-right wins election

A CENTRE-RIGHT alliance led by the Moderate Party's Fredrik Reinfeldt won power in Sweden yesterday, ending 12 years of Social Democrat rule by vowing to lower taxes and trim the welfare state.

Mr Reinfeldt, who will be the next prime minister, declared victory in a tight election. Goran Persson, the Social Democrat prime minister, one of Europe's longest-serving leaders, conceded defeat after ten years in office and will quit as party chief.

According to almost complete results from Sweden's Election Commission, the four-party opposition bloc won 48 per cent of votes to 46.2 per cent for Mr Persson and his allies.

The result was a victory for the alliance's pledges to stimulate job growth by fine-tuning, but not dismantling, the welfare system.

Mr Persson, whose party has ruled Sweden for six of the last seven decades, had vowed to continue government largesse and keep one of the world's heaviest tax burdens.

Despite Sweden's strong economic performance under the Social Democrats, opinion polls had shown many favoured change due to voter fatigue with Mr Persson and a perceived lack of new ideas.

The election was closely watched by governments of other EU countries facing the need of welfare reform because of ageing populations and creaking pension and healthcare systems.