Swedish govt faces battle to stay in power as labour talks fails

Sweden's minority government faces a potential rebellion by three small parties that keep it in power over plans to ease rules in Sweden's rigid labour market.

Sweden's minority government faces a potential rebellion by three small parties that keep it in power over plans to ease rules in Sweden's rigid labor market. Talks between trade unions and employer organizations broke down early on Thursday morning, handing the job of finding a solution to the Social Democrat-Green government, which needs the backing of the Left Party and two small center-right parties to pass its budgets.

Prime Minister Stefan Lofven had promised the two center-right parties that unless the unions and employers agree on new practices, the government will ease first-in-last-out rules which critics argue hamper companies from being able to quickly adapt to changing market conditions. Left Party leader Jonas Sjostedt said he would try to bring down the coalition if that plan now goes ahead.