Ola Ullsten prime minister. SDAP form minority government. Palme prime minister. 1986 Palme shot dead. His deputy, Ingvar Carlsson, succeeds him as prime minister.
Police fail to find assassin.
1990 Carlsson introduces moderate austerity package, cuts government spending, raises indirect taxes. 1992 Austerity measures succeed in reducing inflation but SDAP refuses to support further spending cuts. 1993 Negotiations for EU membership begin. MS coalition survives vote of no confidence. Terms of EU membership settled.