Sweden victor says no far-right pact

The leader of Sweden's Social Democrats says he will try to form a government after their election win, but will not work with the far right. 

Partial results show Stefan Lofven's opposition party are set to return to power, but with no clear majority.

They give the centre-left bloc 43.7%, ahead of the 39.3% for PM Fredrik Reinfeldt's Moderate Party. The far-right Sweden Democrats were at 13%.

Mr Reinfeldt conceded defeat and said he will step down as PM on Monday. 

"The centre-left has more seats [in parliament] than our alliance," Mr Reinfeldt told his supporters. "So tomorrow I am going to hand in mine and my government's resignation."

He also confirmed that he would step down as leader of the conservative Moderate Party. 

Mr Lofven said the country needed a "new direction" and faced major challenges after eight years of centre-right rule. 

"We are in a serious situation. We have thousands of people unemployed, We have school results that are declining more than in any other OECD [Organisation for Economic Co-operation and Development] country," he said. 

Since coming to power in 2006, Mr Reinfeldt's coalition government has cut income and corporate taxes, abolished a tax on wealth and trimmed welfare benefits.

It has also privatised several state-owned companies, including the maker of Absolut vodka. 

The results signal a return to normality in Swedish politics. The Social Democrats have not been in opposition for so long since first taking power in 1920.

With more than 99% of votes counted, the Social Democrats, Greens and Left parties look set to win around 159 seats in the 349-seat parliament, short of a majority.

Mr Lofven told supporters in Stockholm that he would now explore the possibilities of forming a government, but would not cooperate with the Sweden Democrats. 

Far-right kingmaker?

The far-right anti-immigration party are set to become the country's third largest party. 

Correspondents say they could hold the balance of power. 

"We're the absolute kingmaker in parliament now," Jimmie Aakesson, leader of the far-right party, told reporters.

"You have to be able to govern this country for four years," Mr Aakesson told broadcaster SVT, "and it's going to be hard if they are not prepared to talk to us or listen to us."

But Mr Lofven insisted he would not turn to the far-right party. "We will make sure they don't get that kingmaker role," he told supporters.

The Sweden Democrats, who entered parliament for the first time in 2010, are alone in opposing the country's liberal immigration policy. 

Sweden this year expects up to 80,000 asylum-seekers from Syria, Eritrea, Somalia, Afghanistan, Iraq and other countries - the highest number since 1992. 

Meanwhile, results confirm that a small feminist party who had hoped to enter parliament failed to reach the 4% threshold. /Agencies