Sweden's government teeters ahead of no-confidence vote

Sweden's Prime Minister Stefan Lofven was scrabbling for survival on Thursday after four parties pledged to unite across the left-right divide and support a no-confidence vote in his government.

The former union dealmaker now has just days to find a compromise on rent reform, or he will on Monday become the first leader in Sweden's history to lose a no-confidence vote in parliament.

Mr Lofven told a press conference after the vote was tabled that he had yet to decide whether to call a snap election if he loses, and rued the "dangerous road" the four parties had taken.

"We are still in the middle of a pandemic. To cast Sweden into a political crisis in this difficult time for the country is not responsible," he said.

"This is not what the Swedish people expect from politicians, but it's exactly what the Left Party, together with the Sweden Democrats, the Moderate Party, and the Christian Democrats have done."

The Left Party announced its intention to vote together with right-wing parties on Thursday morning, after the government opted to push ahead with moves to liberalise rent controls for new build developments, a red line for the former Communist party.

"I would rather not have had done this," said Left Party leader Nooshi Dadgostar. "We think that this government could have stayed in place if they hadn't pushed forward this proposal. But the border has now been crossed."

Nicholas Aylott, an associate professor at Stockholm's Sodertorn University, said Ms Dadgostar had caught Sweden's political world by surprise with the decision.

"This has escalated far more dramatically than either I or anyone else thought it would," he said. "Everyone assumed that Dadgostar would find a pretext for backing down, but she obviously doesn't want to do that."

"She has decided that for the party's longer-term capacity to achieve things, it must have a tougher reputation so that the Social Democrats take it more seriously as a negotiation partner."

The rent reforms are part of a long list of liberal reforms that the Social Democrats agreed to drive through in exchange for support from the centre-right Centre and Liberal Parties, allowing Mr Lofven to form a government at the start of 2019.

Over the past two years, Mr Lofven has performed an impressive political balancing act, keeping the Left Party and unions on side, while scrapping the top tax band, and reforming laws over hiring and firing.

Mr Aylott said Mr Lofven would seek over the weekend to persuade the Centre Party to withdraw or amend its demands for rent reform, in a bid to win the backing of the Left Party in Monday's vote.