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The decision has sent shockwaves through the EU as most believed they were through the worst of the instability within the EU after turmoil in Spain and then Italy.

Voters delivered a hung parliament in the Sept. 9 election with Lofven's centre-left bloc garnering 144 seats, one more than the centre-right opposition Alliance.

The anti-immigration Sweden Democrats, with 62 seats, also backed the vote to remove Lofven.

Analysts expect the speaker to pick Ulf Kristersson, leader of the Moderate Party - the biggest Alliance party - to try to form a new government.

But with the Alliance in a minority, he needs support either from the anti-immigration Sweden Democrats, shunned by all sides since the party entered parliament in 2010, or the centre left.