Sweden's centre-right opposition bloc has defeated the ruling Social Democrat party in the country's closest-fought general election for decades.
Moderate party leader Fredrik Reinfeldt declared victory as near-complete results gave him a 1% lead.
Minutes later, Prime Minister Goran Persson conceded victory and said he and the government would resign, ending 12 years of Social Democrat rule.
The centre-left party has led Sweden for all but 10 of the past 89 years.
Mr Reinfeldt, who had promised to cut taxes and reform Sweden's cradle-to-grave welfare state, took to the stage in front of supporters with his arms raised.
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