Sweden’s general election concluded with an inconclusive outcome, setting the stage for an extended period of coalition negotiations as parties strive to form a viable government. Official vote counting, which began on Tuesday, is expected to continue through Wednesday or Thursday due to the close margin and the late arrival of overseas ballots.

Preliminary results show a narrow gap of fewer than 30,000 votes between the leftwing opposition bloc and the incumbent rightwing coalition, with roughly 94 percent of votes tallied. The left bloc was projected to secure 176 seats in the 349-seat Riksdag, while the rightwing bloc stood at 73 seats. However, overseas ballots, which historically tend to favor rightwing parties, could shift the balance, leaving the final outcome uncertain.

Prime Minister Ulf Kristersson, leader of the centre-right bloc, acknowledged the complexity ahead, anticipating a challenging process of government formation. “This election result could lead to a complicated government formation process ... I foresee a number of rather complicated conversations,” he said. Should the rightwing bloc prevail, it would mark the first time the Sweden Democrats, a nationalist party with roots in the neo-Nazi movement, would enter government under Kristersson’s leadership.

The opposition Social Democrats, led by former prime minister Magdalena Andersson, secured the largest share of the vote but fell short of a majority. Their vote share was the lowest the party has received since 1908, intensifying pressure on Andersson’s leadership. Andersson’s campaign centered on economic issues, maintaining the welfare state, and opposing the potential inclusion of the Sweden Democrats in government.

The election also highlighted Sweden’s growing political fragmentation, with eight parties winning seats in parliament, reflecting a broader European trend. Both Kristersson and Andersson have hinted at the possibility of forming centrist coalitions that would exclude parties on the far left and right, which performed strongly but remain outside the main blocs.

Smaller centrist parties, particularly the Centre Party, are expected to play a crucial role in coalition talks. The Centre Party previously participated in a centre-right government from 2006 to 2014 but broke ties over disagreements related to collaboration with the Sweden Democrats.

On the campaign trail, Kristersson emphasized reducing asylum applications to the lowest levels in four decades and addressing gang-related violence through tougher law enforcement. Meanwhile, business leaders have voiced concerns over leftwing proposals to increase taxes on wealth and banks, which they warn could affect Sweden’s economic environment.

As Sweden navigates this uncertain political landscape, a protracted and complex negotiation process appears imminent before a stable government can be established.