After Tidö: What a centre-left Sweden would change for Europe

The Gripen fighter jet came in low over the medieval rooftops of Visby, stood on its tail and climbed vertically out of sight. Hundreds of hands went up holding phones. Every late June, all Swedish party leaders gather for Almedalen Week in this town on Gotland, the Baltic Sea’s most strategic island. This year, the military display drew the only unanimous reaction of the week.

Sweden holds a general election on September 13th, but defence has barely featured in the campaign. All parties take the Russia threat seriously, and all want to face it as one. The election is being fought instead over welfare, migration, crime, climate and the economy—and on many of those, the government parties are losing.

Ulf Kristersson’s centre-right Moderates have held the prime minister’s office for four years, after an agreement in 2022 secured them the support of the far-right Sweden Democrats in exchange for a hard line on migration and crime. The so-called Tidö agreement—named after the castle where it was negotiated—broke a taboo: for the first time the Sweden Democrats had formal influence over a government, though it stopped short of joining the cabinet. Now the four parties supporting Kristersson’s government are trailing the opposition in the polls. The Liberal Party, currently in government, has suffered the most from the cooperation with the Sweden Democrats and is now polling below the 4% threshold to get into parliament.

Many analysts therefore expect Magdalena Andersson of the Social Democratic Party to return as prime minister. Her party governed Sweden for most of the 20th century and again between 2014 and 2022, when the country abandoned centuries of military non-alignment to join NATO. What would an Andersson government mean for Sweden’s foreign policy and its role in the EU? Based on several conversations with key people in the opposition parties, in Almedalen and elsewhere: not a dramatic change. But look closer and the differences start to show.

The maths

The political course will partly depend on the majority Andersson can assemble. A deal with the formerly communist Left Party, which is still formally committed to leaving NATO, would create a different government from one built with the market-liberal Centre Party and perhaps the Christian Democrats—and getting all them into the same majority would require political magic. The Green Party is likely to be part of the coalition either way, although senior figures say the case for being in government is still hotly debated internally.

The most likely outcome is that Andersson will lead a red-green coalition, assembled over months of difficult negotiations. The Greens and the Left would push for a less restrictive migration policy than the Social Democrats are ready to accept, having themselves tightened asylum rules when they were in power. For its part, the Centre Party would press for deregulation and other market liberal reforms Swedish business wants—against the trade unions as well as the Greens and the Left.

If Andersson struggles to hold a red-green government together, a grand coalition between the Social Democrats and the Moderates also cannot be ruled out. But that would require a serious external crisis and a significant change within the Moderates.

Names circulating for foreign ministers or “sherpa” for the prime minister are Paula Carvalho, Morgan Johansson, Ylva Johansson, Ann Linde, Kerstin Lundgren, and Oscar Stenström. Peter Hultqvist is likely to return as defence minister.

What will not change

On many key issues, a government led by the Social Democrats would continue Sweden’s current course, regardless of coalition partners. Support for Ukraine is strong across the Riksdag. NATO membership will not be reopened: the security situation and strong public support for NATO membership discourage the Left Party from pushing its formal position, and the Social Democrats would refuse if it tried.

Sweden rejected the euro in a referendum in 2003 and will not revisit it in the coming four years unless there is a deep economic crisis, although the Centre Party may extract a report on the topic. The country’s dependence on exports keeps every party in favour of open trade. Sweden will also remain one of the EU’s most frugal members in negotiations of the next Multiannual Financial Framework.

‘Magda will be Magda’

Elsewhere, the change will be real. A centre-left government will focus more on relations with the global south and gradually increase aid spending. The Social Democrats have a long tradition of cooperating with countries such as South Africa and Brazil and have deepened those ties while in opposition. If Lula da Silva is re-elected, Andersson will be well-placed to strengthen EU-Brazil engagement. The Social Democrats also want closer relations with African states and OECD countries such as Canada, where Andersson has built a strong rapport with Mark Carney.

This agenda includes climate politics—all red-green parties want greater ambition at home and in Europe. For the Social Democrats, green industrial policy is the way to keep workers on side in the green transition, a view shared by trade unions and many industrial leaders. The Green Party might get the development and environment portfolios back, but they would have to fight with the Centre Party for climate and energy.

Middle East policy would also shift. In 2014, a Social Democratic-led government recognised Palestine, the first EU member state in Western Europe to do so, to loud criticism by the centre-right. An Andersson-led government is more likely to criticise Israel’s actions while also condemning terrorism. The complication is Ebba Busch: her Christian Democrats are strongly pro-Israel, and if they join the coalition, Middle East policy will become more complicated.

Andersson would champion a strong UN and revive the “feminist foreign policy” of Margot Wallström and Ann Linde. But in an EU dominated by the European People’s Party, she would find few allies for traditional social democratic causes. The Nordic and Baltic countries are her natural bloc. Beyond them, only a re-elected Pedro Sánchez in Spain—a big if—would give the Party of European Socialists a large member state. However, leading Social Democrats are keen to avoid comparisons with Sánchez or Denmark’s Mette Fredriksen. “Magda will be Magda”, says one. On other topics, such as support to Ukraine, Sweden will continue to be part of coalitions of the willing.

A rapid increase of defence spending would continue with either Kristersson or Andersson as prime minister, with the Social Democrats also advocating additional resources for civil defence.

The consensus on security policy runs deep. In the all-party Defence Commission’s report this summer, the Social Democrats fully agreed with the government’s assessment of the security situation. A rapid increase in defence spending would continue with either Kristersson or Andersson as prime minister, with the Social Democrats also advocating additional resources for civil defence.

However, a centre-left coalition could face internal conflicts over the envisaged rotating presence of French nuclear-capable aircraft in Sweden or cooperation with Turkey on intelligence and anti-terrorism, both of which the Left Party would resist. Rather than fight it, the coalition might just pay them off. “Magda will buy them out,” says a prominent Social Democrat, comparing to how Fredriksen made a deal with the left-ish Enhedslisten in Denmark, giving them social reforms in exchange for staying out of her cabinet.

And while the Social Democrats accept the role of nuclear weapons in NATO strategy, they press harder than the Moderates on global non-proliferation.

Biting their tongue on Trump

Although senior Social Democrats are highly critical of US president Donald Trump in private, and Andersson expressed solidarity with Denmark when he threatened Greenland, the party will not pick a public fight. It agreed with the conclusions of the Defence Commission, such as the importance of the American security partnership, and even in background talks Social Democrats decline to discuss alternatives to NATO command structures for large military operations. “We presume that SACEUR is responsible”, says one senior figure, referring to NATO’s commander in Europe, who has always been an American. Sweden’s reliance on American aircraft, interceptors and satellites in the sensitive Baltic Sea area leaves Andersson far less room than Sánchez has in Madrid.

If Kristersson survives

None of this is settled. ECFR’s New Politics research shows how volatile European electorates have become, and a late swing could leave Kristersson in office—this time with Sweden Democrats in ministerial posts, as the Moderates have promised.

That would hand the far-right party real power this time. Given its size, it will likely take influential portfolios, such as representing Sweden in EU negotiations on migration policy and home affairs, and perhaps finance and competitiveness too, like the Finns Party in Finland.

Even more importantly, the Sweden Democrats would fully participate in foreign and security policy decisions. In Sweden, ministers make government decisions collectively and are briefed on sensitive intelligence matters at cabinet meetings. While the party has been vocal in criticising Vladimir Putin since its links to Moscow were exposed, the opposition still sees them as a security risk.

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A new government will bring more of a tilt than a dramatic change in Sweden’s foreign and European policy. This will be important in the decisive year of 2029, when a new president of the European Commission will be chosen—and in a political landscape that might include far-right leadership in France, Italy and Poland. The Gripen will keep flying over Visby whoever wins in September. What changes is Sweden’s place in an EPP-dominated Europe.