Swedish PM Faces Renewed Crisis as Labor Talks Break Down Again

(Bloomberg) -- Sweden’s Prime Minister Stefan Lofven is facing the prospect of an opposition bid to topple him after talks between unions and employers collapsed for a second time.

The negotiations center on proposed changes to labor laws that would make it easier to fire workers. Already unpopular within Lofven’s own Social Democrat party, the measures have also drawn the ire of the Left Party. The former communists have threatened a vote of no confidence in the government, which would also be backed by opposition parties on the right.

“We have really tried, all the way, to reach an agreement, but we haven’t succeeded,” Susanna Gideonsson, chairwoman of the Swedish Trade Union Confederation said at a press conference in Stockholm on Friday.

“We succeeded in some parts but we have been less successful on the issues that were the main reason why we wanted these negotiations,” Gideonsson said.

The last round of negotiations broke down earlier this month. And Lofven’s best bet of avoiding a no-confidence vote had been for the labor market parties to reach an agreement among themselves, without involving the government.

That scenario is looking increasingly unlikely and Lofven himself has said the proposals, which are based on an agreement with two centrist parties forged in the wake of the 2018 elections, lack balance.

Now the prime minister must find common ground that placates the left-wing opposition, while also avoiding a mutiny from his center-right backers. That presents a daunting challenge even for Lofven, who has a history of surviving seemingly intractable conflicts.

©2020 Bloomberg L.P.