Swedish government claims victory at polls

Sweden's Social Democrats claimed victory in national elections yesterday after a close race against a centre-right opposition.

"This is an important moment for me - to win an election and go against a European trend, to win so clearly when in government," the prime minister, Goeran Persson, said. "I'm happy and moved, but not so surprised."

Election returns showed that Swedes had voted to keep the industrialised world's highest taxes to pay for a big public sector, rather than opt for the tax cuts and privatisation offered by the opposition.

With nearly 100% of the vote counted, the Social Democrats looked set to stay in power with a minority government if supported by left and green parties in the 349-seat Riksdag, or parliament.

The three parties combined had 191 seats, compared with 158 for the four centre-right opposition parties, according to official results.

The victory means Mr Persson will now shepherd the country through a referendum on whether to join the euro.

Sweden's rejection of the conservative tide that has toppled many European leftwing governments in recent years could encourage Germany's chancellor, Gerhard Schröder, whose coalition with the Greens has taken a narrow lead in the polls ahead of next week's election.