The New Economist has a round-up of MSM commentary on the meaning of the Social Democrats's loss to the New Moderates in the recent Swedish elections. While the closeness of the NM victory (48.1 % of the popular vote against 46.2 % for SD) lends itself to a variety of interpretations, it also rules out a sharp rightward turn in Sweden's economic policies. I don't think the Welfare State in Sweden is in any danger of being dismantled.
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From
http://www.reason.com/hod/mm092006.shtml
"The Social Democrats lost. But it appears that the welfare state won."
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