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Swedish Social Democrat leader Stefan Lofven faces a tough task building a new government after an election on Sunday left the center-left short of a majority in parliament and handed the balance of power to a party that wants to slash immigration. Prime Minister Fredrik Reinfeldt and his center-right coalition government, in power for eight years, will hand in their resignation on Monday after garnering fewer seats in parliament than the center-left opposition. The far right anti-immigration Sweden Democrats emerged as the third biggest party, winning 12.9 percent of the vote. "Sweden is waking up to a new political landscape," Robert Bergqvist, chief economist at SEB said in an analysis.