Sweden Election Reshapes European Politics as BRICS Pushes for IMF Reform
Two major political and economic developments are unfolding at the same time: Sweden’s closely contested election has exposed the changing role of the far right in European politics, while the BRICS group is stepping up its campaign to reshape the global financial system.
The developments may appear unrelated, but together they highlight a broader shift in the international order — one in which traditional political alliances are being challenged and emerging powers are demanding greater influence over global institutions.
Sweden’s Far Right Falls Short of Expected Breakthrough
Sweden’s September 13 general election was widely viewed as a potential turning point for the country’s far-right Sweden Democrats. Before the vote, the party was seeking a historic breakthrough: if the right-wing bloc won, the Sweden Democrats could have entered government formally for the first time and received ministerial positions.
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Reuters
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Instead, preliminary results suggest that the centre-left opposition has narrowly edged ahead.
With most votes counted, the left-leaning bloc is projected to hold around 176 seats in the 349-seat Riksdag, compared with approximately 173 for the right-wing bloc led by Prime Minister Ulf Kristersson. Final results, including remaining overseas ballots, could still alter the balance.
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Reuters
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The result represents a setback for the Sweden Democrats, which appear to have lost significant support and dropped to roughly 17.6 percent, becoming the country's third-largest party rather than maintaining their previous position as the second-largest.
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Le Monde.fr
Nevertheless, the election does not mean that the influence of the far right has disappeared.
The Sweden Democrats Have Already Changed the Political Debate
The Sweden Democrats' rise over the past decade has fundamentally altered Swedish politics. Under the 2022 agreement between Kristersson's Moderates and their allies, the Sweden Democrats remained outside the cabinet but gained substantial influence over government policy, particularly on immigration and crime.
That cooperation helped push Swedish politics toward tougher immigration controls and more aggressive criminal-justice policies. Ahead of this year's election, Kristersson had even indicated that a new right-wing government could give the Sweden Democrats formal ministerial positions.
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Reuters
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The latest result therefore represents more than a simple defeat for one political party. It also demonstrates how far-right parties can influence mainstream politics even when they are not formally in government.
Sweden's mainstream parties have increasingly adopted tougher positions on immigration, integration and crime. As a result, some of the policy changes associated with the Sweden Democrats may remain even if the centre-left ultimately succeeds in forming the next government.
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AP News
The immediate challenge will be coalition building. The parliamentary margin is extremely narrow, and disagreements among the parties on the left could make forming a stable government difficult.
BRICS Takes Aim at the Global Financial System
While Sweden confronts its own political realignment, BRICS is pursuing a very different kind of transformation — one aimed at the architecture of the international economy.
At the BRICS summit in New Delhi on September 12–13, member states called for reforms to major international financial institutions, including the International Monetary Fund and the World Bank.
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Gouvernement Indien
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The central complaint from BRICS countries is that the existing institutions do not adequately reflect the economic weight and interests of emerging and developing economies.
BRICS has therefore pushed for greater representation, stronger voting power and more influence for developing countries in global financial decision-making. Finance officials have also backed deeper cooperation on cross-border payments and settlements in local currencies.
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Global Banking & Finance Review
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For BRICS members, IMF reform is part of a broader effort to make global economic governance more representative of today's multipolar economy.
Why IMF Reform Matters
The IMF was created in the aftermath of the Second World War, when the global economic balance was very different from what it is today.
Countries such as China, India, Brazil and other emerging economies now account for a much larger share of global economic activity. Yet BRICS members argue that the distribution of influence inside international financial institutions has not kept pace with that transformation.
Reforming the IMF could therefore have significant consequences.
Greater voting power for emerging economies could influence decisions over financial assistance, economic policy and crisis management. It could also strengthen the political influence of countries that have increasingly sought alternatives to Western-dominated institutions.
BRICS is simultaneously developing mechanisms for greater financial cooperation, including efforts to expand local-currency transactions and improve cross-border payment connectivity.
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Forbes India
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This does not necessarily mean that BRICS is about to replace the IMF or create a completely separate global financial system. Rather, the group appears to be pursuing a gradual transformation of the existing system while building alternatives that could reduce dependence on traditional Western financial structures.
Two Different Signs of a Changing World Order
The Swedish election and the BRICS campaign represent very different political stories, but both reflect a wider trend: established institutions and political arrangements are under increasing pressure.
In Europe, voters are challenging traditional party systems, while mainstream parties are being forced to respond to the growing influence of nationalist and populist movements.
At the international level, emerging powers are demanding greater influence over institutions created when the global balance of power looked very different.
Sweden's election shows that the rise of the far right is not necessarily unstoppable. The Sweden Democrats have suffered an electoral setback, but their influence on the country's political debate remains substantial.
Meanwhile, BRICS' push for IMF and World Bank reform demonstrates that the debate over global power is no longer confined to national elections. It is also taking place inside the institutions that govern international finance.
A More Fragmented Global Landscape
The coming months will reveal whether Sweden can form a stable government and whether the country's centre-left bloc can maintain its narrow advantage.
At the same time, the success of the BRICS reform agenda will depend on whether its members can translate demands for greater representation into concrete changes within the IMF and World Bank.
Neither development is likely to produce an immediate transformation.
But together they point toward a world becoming more politically fragmented and more openly competitive — both within individual democracies and between competing centres of global power.
Sweden's election is a reminder that the future of European politics remains unsettled. BRICS' campaign for financial reform is a reminder that the international economic order is unsettled too.
The common theme is change: the old political and financial structures are being tested, and the struggle over what comes next has already begun.
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