Left and environmentalists are the main winners in Sweden's poll

After an election campaign, dull even by modest Swedish standards, the results turned out to be national records in several respects…

After an election campaign, dull even by modest Swedish standards, the results turned out to be national records in several respects when votes were counted on Sunday evening.

It was the worst result for the governing Social Democratic Party since universal suffrage was established in Sweden 80 years ago. It was also the worst result ever for the Liberals and the Centre Party. Once they were the leading non-socialist parties; one more defeat and they are out of Swedish politics altogether.

On the other hand it was the best outcome ever for the Left Party, formerly the Communists. The fact that their leader, Ms Gudrun Schyman, the first woman to hold the post, has publicly shown severe problems with alcohol, did not discourage voters from making the Left the third biggest party in the Swedish parliament.

The poll also marked a record high for the Christian Democrats.

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With all these political records, it might seem that Swedish politics must be in for dramatic changes. Unfortunately not. The minority Social Democratic government will continue: Social democrats are used to governing without a majority in parliament.

The Prime Minister, Mr Goran Persson, will lean extensively on the Left Party and the Greens. The latter party holds the balance in parliament but prefers the Social Democrats to a four-party no-socialist coalition dominated by the Conservatives.

The issue of starting to decommission the 12 Swedish nuclear reactors has importance in this context.

The outcome of the elections also makes it less likely that Sweden will join the EMU. NATO membership, a prospect raised by Liberals and Conservatives, is now out of the question. When it comes to the monetary union, the picture might, however, change. The election was held before the deep economic problems in Asia and other parts of the world made an impact on the Swedish economy. But it will make an impact and already the stock prices are falling steeply. Asia has been a rapidly growing market for big Swedish companies, such as Ericsson and Volvo. Sweden has for some years had a trade surplus with Japan.

If the euro turns out to be good for the member countries in times of economic turmoil, while the crona takes a beating, opinions could change. At that point there might also be a historic political realignment in Sweden, the grand coalition between Social Democrats and the Conservatives, the main non-socialist party led by Mr Carl Bildt, former prime minister and peace co-ordinator in Bosnia. This is what many in the Swedish business community are hoping for, but it will take a real economic crisis to make the dream come true.

Fredrik Braconier is Foreign Editor of the Swedish daily, Svenska Dagbladet.