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Sweden PM's Last-Ditch Pitch to Save Cabinet Snubbed By Left - Bloomberg

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A last-ditch proposal by Sweden’s Prime Minister Stefan Lofven to resolve a government crisis was rebuffed by his former allies on the left, setting the stage for a no-confidence vote on Monday.

Lofven’s announcement that a proposed rent deregulation, which made the majority in parliament turn against him, will be renegotiated by tenants and landlords, was swiftly turned down by Left Party chair Nooshi Dadgostar. The leftist leader, who formed an unlikely alliance with the conservative and nationalist opposition last week, characterized the offer as “political theater.”

Lofven, a 63-year-old former union leader and welder, would have a week to resign or announce snap elections if ousted in the Monday vote, the most serious threat yet for the minority coalition of Social Democrats and Greens that’s ruled for 2 1/2 years.

The alliance, formed after four months of grueling talks, has been fragile from the start as it relied on the support of two center-right parties and the Left that meant Lofven had to walk a tightrope on some of the reform demands.

“We have constantly said that negotiations can’t happen based on the proposal,” Dadgostar said on Twitter. “Let the parties negotiate without threats.”

Her comments came after Lofven announced earlier that the Swedish Union of Tenants and landlords’ organizations will hold talks until Sept. 1 to “get a chance to find a solution” on how rents should be set in new-built apartments, a concession he won from his Center Party-ally.

With a long tradition of political consensus-seeking, Sweden last had an early vote in 1958. In 2014, Lofven negotiated a solution after having threatened an early election over losing support for his budget plans.

Lofven, who has a history of surviving seemingly intractable conflicts, was hoping that the concessions the Center agreed to would be enough to placate the Left. While Dadgostar welcomed negotiations, she said the current proposal cannot be the basis of negotiations.

“If the threat of deregulation remains, it is a very unfair negotiation, because one party doesn’t have to agree to very much at all, while the other party is negotiating under the gun,” Dadgostar said in an interview. “We have already said that this is not an option.”

(Adds Left Party comments from first paragraph.)

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