Outgoing Swedish Prime Minister Stefan Lofven (File | AP) 
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Swedish Prime Minister Stefan Lofven fails to form a government

A caretaker government under Lofven continues to run the country but the lack of progress in coalition talks makes a snap election more likely.

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STOCKHOLM: Outgoing Swedish Prime Minister Stefan Lofven on Monday said he had failed to form a government, marking the second unsuccessful bid to build a coalition after last month's election left a hung parliament.

Neither of the main centre-left or centre-right blocs won a majority in the September 9 election after a far-right, anti-immigration party gained ground, leaving the country in political deadlock.

"The conditions are not right now for me to form a government," Lofven told reporters after his Social Democrats party spent two weeks in talks with other parties.

A caretaker government under Lofven continues to run the country but the lack of progress in coalition talks makes a snap election more likely.

The leader of Sweden's centre-right Moderates party Ulf Kristersson also failed to form a coalition earlier this month.

"My role is going to be more active," said Parliament speaker Andreas Norlen, who has four chances of tasking a candidate to form a government that parliament will accept.

If all four attempts fail then Sweden will head to another election. 

"That would be a major failure," said Norlen.

Fresh talks to find a new candidate to lead the country are due to start on Tuesday.

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