Swedish government teeters as ‘far-right’ party says will block budget

Protesters carry signs against the right-wing Sweden Democrat party (SD) during a demonstration against anti-immigration politics in downtown Stockholm, on Oct. 4, 2010.

(Reuters) – Sweden’s minority, center-left government looked close to collapse on Tuesday after just two months in office when a far-right party announced it would vote against the 2015 budget, effectively dooming it to defeat.

The anti-immigration Sweden Democrat party, which holds the balance of power in parliament, said it would support instead an alternative budget proposed by the center-right Alliance opposition bloc, leaving the government isolated.

Prime Minister Stefan Lofven invited Alliance leaders for immediate talks to resolve the crisis and urged them to live up to election promises not to work with the Sweden Democrats, who want to cut the number of asylum seekers by 90 percent.

“I am ready to cooperate across the party divide,” Lofven told reporters.

However, the leaders of the Moderate, Center, Christian Democrat and Liberal parties, which make up the Alliance, did not immediately respond to his olive branch and prospects for compromise looked bleak…