Danish Pm Wins Gamble on Early Election

Denmark's centre-right government secured a third term in office last night after the prime minister, Anders Fogh Rasmussen, gambled on an early election and won a narrow victory.

Rasmussen, in power since 2001, called the election three weeks ago and two years early, betting on obtaining a strengthened mandate at a time of economic growth, low unemployment, tax cuts, and reform of Denmark's generous welfare system.

Rasmussen, a liberal, is in formal coalition with conservatives and also supported in parliament by the populist rightwing Danish People's party.

It appeared last night that the outgoing coalition had won about 90 seats in the 179-seat Folketing or parliament, against around 81 for the centre-left.

It remained to be seen whether Rasmussen will also need the support of the New Alliance, a centrist grouping led by Naser Khader, a Muslim of Syrian and Palestinian origin, to form a stable government. Khader's party was slated to take five seats.

Khader soared to prominence in Denmark during the Muhammad cartoons crisis by supporting Denmark against criticism from the Islamic world. He may yet prove to be kingmaker if Rasmussen and his allies fall just short of the 90 seats needed for one-seat majority.

Rasmussen was opposed by a four-party centre-left coalition led by the new social democrat leader, Helle Thorning-Schmidt, a daughter-in-law of former Labour party leader Neil Kinnock, who was bidding to become Denmark's first female prime minister.

The main issue dividing the parties was welfare spending versus tax cuts.

But the main battleground concerned the two small but influential fringe parties, Khader's New Alliance and the rightwing, anti-immigrant Danish People's party.

The government has been dependent on tacit parliamentary support from the DPP to survive. The price of that support has been to enact Europe's most restrictive asylum and immigration policies.

Khader campaigned to loosen the tough anti-immigrant stance and to combat the DPP's anti-Muslim rhetoric.

The government is likely to be unstable if both parties are involved in keeping Rasmussen in power.