Sweden won't hold a snap election in March after the government struck a deal with the opposition in a bid to limit the influence of the anti-immigration Sweden Democrats.

We have “reached an agreement which makes it possible also for a minority-government in a completely new political situation to push through its fiscal policy,” prime minister Stefan Löfven said at a press conference. "This is good for our country."


The ruling Social Democrats and Greens have held talks with the opposition since early December when the minority government's budget was voted down in parliament. The former governing alliance parties led by the Moderate Party, “wanted to create stability and order in how Sweden is governed,” according to the incoming Moderate leader Anna Kinberg Batra. Although Batra was clear about her party remaining active in opposition the six parties have also agreed to hold talks on crafting common policies on energy, defense and pension issues.

As recently decided by the Parliament the left-green government will be following the Alliance's budget in 2015. The agreement, announced on Dec. 27 at a joint press conference where all six parties participated, will however allow the Social Democrats to enact large parts of its original program in the revised spring budget. The only thing they can’t push through in a mid-year supplemental budget are income tax increases, the prime minister said.

The agreement between the six parties in brief:
- The prime ministerial candidate who collects support from the party constellation that is larger than all other possible government constellations will be supported.
- A minority government should be able to pass its budget in parliament.
- Breakout from the budget will not be possible
- The agreement identifies three policy areas for collaboration and conversation - defense and security, pension and energy
Of the agreeing parties - the governing Social Democrats and Greens along with the Alliance, Nya Moderaterna, the liberals (fp), the Center party and the Christian Democrats - the party to make the most concessions short term seems to be the Greens (mp), which is likely having to backtrack on some of its earlier election promises.

The Left Party, which backs the government in parliament, said it “welcomed” the accord - and will likely gain a bit of power in some individual issues where the government needs its support.

The third-largest party, the Sweden Democrats may be preparing a no confidence vote against the government in parliament. The party had intended to turn the snap election into a referendum on Sweden's flexible immigration policies.

A no confidence vote by an opposing party will go nowhere under the agreement, however. The prime ministerial candidate who represents the largest party constellation and is suggested to form a government by the speaker of the parliament will be supported by the parties of the Dec. 27 agreement. This is done by members of other parties behind the agreement abstaining from vote. The same applies when voting on an incumbent Prime Minister following an election.

The budget proposition and guidelines for the economic policies of the party constellation, which is greater (and thus, governing) is released for a budget vote in Parliament. If there is a risk that the proposal would otherwise fall other parties behind the Dec. 27 agreement will refrain from participating in the vote. The same also applies to decisions about amending the budget and spring budget (including guidelines for economic policy).

The agreement is valid until the election day of 2022.