Swedish Left Party reject housing compromise, PM Lofven set for no-confidence vote


FILE PHOTO: Swedish Prime Minister Stefan Lofven speaks during a news conference at Rosenbad, as a no-confidence vote looms, in Stockholm, Sweden June 17, 2021. TT News Agency/Janerik Henriksson via REUTERS

STOCKHOLM (Reuters) -Sweden's Prime Minister Stefan Lofven on Sunday appeared to have failed to stave off a no-confidence vote on Monday he is likely to lose after the Left Party dismissed his compromise for a new system of setting apartment rents.

Lofven earlier on Sunday offered a compromise that would mean counterparts in the housing market would work to reach an agreement for a new rent-setting model for new production, which has been the norm in Sweden.

"We are giving the counterparts an opportunity to find a solution. We now expect that other political parties are prepared to be responsible and not plunge Sweden into a political crisis," Prime Minister Stefan Lofven told a news conference.

However, the proposal was quickly dismissed by the Left Party.

"One of the counterparts is negotiating with a gun held against its temple," Left Party Leader Nooshi Dadgostar told Swedish Radio. "We are heading towards a no-confidence vote. I find it concerning that they are so determined to raise people's rents."

Sweden has a rigid system using collective bargaining for setting rents. Centre-right parties have long tried to loosen the rules and let the market decide rental prices for newly-built apartments, which would affect roughly 1% of Sweden's apartments.

Earlier this week the opposition Sweden Democrats called a vote of no confidence scheduled for Monday, which Lofven looked set to lose after the Left Party withdrew its support for the government over a proposal to ease rent controls on newly built apartments. [L5N2O01LC]

(Reporting by Johan Ahlander and Anna Ringstrom; Editing by Emelia Sithole-Matarise and Louise Heavens)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In World

Haunted by the carnage: French gendarmes testify before Paris attacks trial
Puppet makes cross-Europe trek to support child refugees
EU leaders to discuss soaring energy prices
French Greens pick Jadot as presidential candidate amid fragmented Left
Germany's T�V S�d "shirking responsibility" over 2019 Brazil dam burst, court hears
Chancellor or bust: Germany's Laschet fights for his political life
Young Germans tired of status quo put faith in Greens, liberals
Nigerian security forces kill eight at Shi'ite march, participant says
WHO 'heartbroken' by Congo sex abuse probe findings
Turkey to press Russia to restore calm in Syria's Idlib

Stories You'll Enjoy


Vouchers