By Tommy Hansen

COPENHAGEN, Denmark

 Sweden's two-month old government collapsed Wednesday after its budget proposal for 2015 was rejected in a crucial parliamentary vote.

The crisis came after the budget proposed by Prime Minister Stefan Löfven's government -- which called for a rise in taxes and spending on welfare and jobs -- was rejected by 182 votes to 153.

The social democratic prime minister said at a press conference late Wednesday: “The government is going to call for a new election to let the voters have their say.”

He said an election would be held on March 22, 2015.

His announcement came shortly after the center-right opposition -- with support from the anti-immigration Sweden Democrats -- had voted down government's budget proposal.

The anti-immigration Sweden Democrats had vowed to oppose "any finance bill as long as Sweden does not tighten its asylum policy."

Löfven added: "I will not accept that the Sweden Democrats have a decisive say on Swedish politics." 

He said the four opposition parties of the Alliance -- Moderate, Centre, Christian Democrat and Liberal People's parties -- had reneged on election promises not to let the Sweden Democrats influence Swedish politics.

Löfven declared: “Now, that's exactly what they have done. So this is a totally new situation politically, and therefore we have to ask the Swedish people for the mandate needed."

The Sweden Democrats have held the balance of power in the Swedish parliament after it doubled its voter support in the September 2010 general election. 

The party has gained popularity mainly because of its stance against immigration in Sweden and calls to drastically reduce the number of asylum seekers. 

CEO Torbörn Sjöström, from the Swedish marketing communication company Novus, told The Anadolu Agency that the Sweden Democrats were most likely to be the ones to gain from a new election.

He said: "I think some voters may punish the Social Democrats for not being able to put forward a budget acceptable to the opposition, and therefore vote for the Alliance parties this time. But others may turn to the Sweden Democrats, who basically think they have a big understanding of current problems and a very clear solution."

The Sweden Democrats have heavily criticized Sweden's liberal immigration laws, but have failed to find support among other parties in the Swedish parliament. 

The party, which describes itself as “social conservative with a nationalist foundation,” won almost 13 percent of the votes in the last election in September.

Löfven's government consists of the Social Democrats and the Green Party and was installed on Oct. 3 following the 2014 general election. 

But with only around 40 percent of the seats in the parliament, the coalition government has been one of the weakest minority governments in Swedish history.

The earliest possible date for calling new elections is Dec. 29, according to the Swedish constitution.  

www.aa.com.tr/en