A clash over housing policy in Sweden led to a real government crisis on Monday as a fragmented parliament withdrew its support for Social Democratic Prime Minister Stefan Löfven. In a vote of no confidence, 181 deputies voted against Mr Löfven, with 109 for and 51 abstentions. Mr Löfven now has a week to decide whether to call a snap election or to step down and try to form a new governing coalition without new elections.

In voting for Mr Löfven’s impeachment, MPs from the Left Party – whose withdrawal of support for the prime minister on Thursday led to the vote – were joined by former rivals from the center-right Moderate Party and Christian Democrats and the increasingly influential far right Swedish Democrats (SD).

Like many European countries, from Finland to France and from Germany to Greece, Sweden has seen the emergence of an influential far-right anti-immigration and anti-EU political party, in this case the D.

The SD has gained increased support for its criticism of establishment politicians, Brussels and the continent’s response to the 2015 migrant crisis.

In 2018, a local Swedish Democratic adviser, Helmut Peterson, even warned Brussels that his behavior on Britain’s Brexit would have triggered Sweden’s own exit.

“Why are there problems in the talks? It’s not Britain. It’s the EU that’s causing the problem.”

While the SD party has seen polls skyrocket, critics have attacked the party for its high-profile neo-Nazi roots.

The party has made it clear its goal of pulling the country out of the European Union.

They also focused on restricting immigration, amid a widespread populist wave across Europe.

“Obviously, the EU was not ready to accept this.

“And this whole problem with fishing in the bloc only makes it less desirable for Iceland to consider joining the EU.

“We have a lot of interests in the fishing industry because a large part of our economy is based on fishing.

“So some people in Iceland are saying, ‘Look at the way the EU is treating Britain!'”

He added: “They are not setting a good example for countries like Norway and Iceland if they want those countries to join.

“They are not sending a good message.”

Iceland suspended its candidacy for the EU in 2013.

Iceland’s accession to the European Economic Area (EEA) allows full access to the single market, its largest trading partner, but forces the country to accept EU rules such as free movement.

Legal issues are handled by the European Free Trade Area (EFTA) tribunal, which is independent and although its decisions are often based on case law established by judgments of the European Court of Justice (ECJ).

Norway and Liechtenstein are also members of the EEA and EFTA.