As prime minister resigns, far-right party holds key to power in Sweden and demands asylum curb

It is widely viewed as one of the most liberal countries in the world.

But the next Swedish government is likely to be formed with the support of a far-right party which came second in last weekend’s election.

The Sweden Democrats party has been invited to join coalition talks by the centre-right Moderate party. Although the party won more votes than the Moderates it is not considered likely to lead the next government.

Founded in the 1980s by far-right extremists, the Sweden Democrats party has moved to the mainstream in recent years but it has not fully shaken off that stigma.

It is now demanding measures to deport foreign criminals, strip gang members of their citizenship and freeze the asylum system as its price for propping up the Moderate party and

making its leader, Ulf Kristersson, prime minister. Policies under discussion include cutting benefits to immigrants unless they learn Swedish or get a job, indefinite jail sentences for serial rapists, renting prison spaces overseas and reducing the number of asylum claims by non-Europeans to almost zero. Magdalena Andersson, Swedish Social Democratic Party leader, resigned as prime minister on Thursday after her coalition lost its majority. She had become Sweden’s first female PM when she took office last year.