Fractious politics to test new Swedish leader's negotiating skills

STOCKHOLM (Reuters) - At the height of the global financial crisis trade union leader Stefan Lofven, now set to become Sweden's prime minister after Sunday's election, did the unthinkable and cut a deal with employers agreeing pay cuts and shorter hours.

The deal, which some industrialists say helped many Swedish firms survive the crash, underscored the pragmatism and negotiating skills of Lofven, leader of the Social Democrats, who now faces the hard task of managing a minority government.