New centre-right Swedish PM takes office

STOCKHOLM, Oct 5 (Reuters) Centre-right leader Fredrik Reinfeldt, who has pledged to cut taxes and trim the welfare state, formally became Sweden's new prime minister today after winning a vote in parliament.

Reinfeldt polled 175 votes in his favour and 169 against in the 349-seat parliament. His appointment had been expected after he led a four-party alliance to victory in the September elections.

Reinfeldt, who leads the Moderate Party that ended 12 years of Social Democrat rule, will lay out his government's plans for the next four years and present his cabinet tomorrow. He will launch a budget on October 16.

He told reporters that the government, which includes the Folk Liberal Party, the Centre Party and the Christian, was well prepared to take over the reins of power.

''This (preparedness) will be seen by a high pace of reforms and a large number of proposals,'' he said.

The coalition has so far said little about who will be in the government.

Reinfeldt said the cabinet line up was ready, but that he would not say anything about it until he presents it to parliament. He will address parliament at 9 a m 1230 HRS IST tomorrow.

During the election campaign, Reinfeldt and his allies argued that Sweden's economy, despite performing at its best for years, was failing to create jobs.

They say their aim is to correct this by cutting income tax to make it more profitable to work for lower and middle-income earners, and reduce unemployment benefit to boost incentives to take a job.

Outgoing prime minister Goran Persson, in office 10 years, had said Reinfeldt's policies would simply punish the unemployed and benefit the rich.

Reinfeldt said the new government would meet at the weekend, mainly to discuss budget issues. He would make his first state visit, which is traditionally to Finland, the weekend after.

REUTERS PB VC1915