Sweden’s PM Given Breathing Space to Salvage Labor Law Talks

(Bloomberg) -- On Sunday night Swedish Prime Minister Stefan Lofven was granted a last minute reprieve to avoid a political crisis that threatens to engulf him.

Lofven and his government face a vote of no confidence from the Left Party unless controversial changes to the country’s labor laws are scrapped. Opposition parties the Christian Democrats, the Sweden Democrats and the Moderates have also said they would back the vote.

But the Left Party’s Jonas Sjostedt, speaking on a party leaders’ debate on state broadcaster SVT, said that he’s prepared to give the Social Democrat-led government “a little bit more time.”

“It could be worth doing this for a couple of weeks,” Sjostedt said. “I’m prepared to talk, because this can be solved.”

That now gives Lofven some space to rescue last month’s failed set of labor talks. However, the prime minister’s task remains a daunting one with his budget allies -- the Liberals and Centre Party -- insisting the labor law changes be enacted under the terms of a 2018 deal that propelled the Social Democrats back into power.

“The current proposal isn’t balanced,” Lofven said during the leaders’ debate. “The inquiry is out for consultations. I want to wait and see what they say.”

Read More: Swedish PM Closer to No-Confidence Vote as Opposition Mounts

©2020 Bloomberg L.P.