By Johan Ahlander and Tom Little
STOCKHOLM, Sept 13 (Reuters) - Swedes voted on Sunday in a closely fought election that will either bring a far-right party into government for the first time or shift the country back towards the liberalism it has long been known for.
Sweden's centre-left opposition held a narrow lead over the ruling right-wing bloc ahead of Sunday's election for parliament, several opinion polls showed this week.
But Prime Minister Ulf Kristersson, who has trailed in opinion polls
throughout his four years in office, has been catching up in the final weeks of campaigning, with rival Magdalena Andersson and her Social Democrats losing ground.
Kristersson, who has governed for four years with the support of the far-right Sweden Democrats from outside his coalition, has said he will bring them formally into government if his bloc wins, breaking a longstanding taboo.
"The precondition for getting things done is actually the ability to compromise, to have a clear vision but be pragmatic," he said in his home town where he voted on Sunday. "If we get people's votes we will continue to do that for the coming four years."
Electoral success for the Sweden Democrats would be welcomed by Europe's ascendant far-right parties, buoyed by the anti-immigrant Alternative for Germany's win in a German state election last week. The far right hopes for gains in upcoming elections across Europe, with the National Rally's bid for the presidency of France next year the biggest potential prize yet.
The centre left says Kristersson has crossed a line by inviting the Sweden Democrats into power.
"It's a very important election for Sweden, if we for the first time should have a right-wing extremist party founded by neo-Nazis in government, or a government led by me," candidate Andersson told Reuters as she voted with her husband on Sunday.
The Sweden Democrats acknowledge that their party was founded in part by neo-Nazis and white supremacists in the 1980s but say they have eliminated such extremists from their ranks and apologised for their past.
'DOESN'T LOOK LIKE SWEDEN'
Voting on Saturday in Rinkeby, near Stockholm, the Sweden Democrats' longstanding leader Jimmie Akesson said the suburb, home to one of the country's biggest Swedish-Somali populations, "doesn't look like Sweden".
Sweden was long one of Europe's most welcoming countries for immigrants. But since Kristersson came to power four years ago, policies have shifted starkly. Permanent residency for refugees was abolished, welfare rules tightened, and expulsions stepped up for those without a right to stay.
"They target Muslims. They single out Muslims and immigrants. But immigrants contribute to society," said Kahin Ahmed, 57, a sociologist who came to Sweden from Somalia as a refugee.
The Sweden Democrats have pledged to go further, including banning face-covering women's dress if they get into government. Akesson told Reuters such dress "reflects values that I don't think belong in Sweden".
Supporters of Sweden's right-wing bloc say a win would amount to an endorsement of policies that have helped curb gang violence and cut immigration dramatically.
Johanna Tornqvist, 44, a market analyst who voted for the right-wing coalition, said fears surrounding the prospect of the Sweden Democrats joining the government had been exaggerated.
"The most important thing is to keep the red-greens out of government," she said.
But Susanne Cherment, a 20-year-old student voting for the first time at a polling station in Nacka, east of Stockholm, said she thought it was "scary" that young people were drawn to the far right.
Exit polls are due soon after polling stations close at 1800 GMT, and data giving an indication of the result is expected at around 1900 GMT.
The right has already agreed to form a four-party government led by Kristersson if they win.
Andersson's path to power is more uncertain with divisions among opposition parties. Her Social Democrats have been losing ground in opinion polls despite support from celebrities including ABBA's Benny Andersson, no relation, who changed the lyrics in the refrain of "Mamma Mia" to "Magdalena" at a rally where he performed this week.
The election could ultimately be decided by whether a small party in Kristersson's coalition, the Liberals, surpass the 4% threshold to win seats.
(Reporting by Niklas Pollard, Simon Johnson, Johan Ahlander and Tom Little; additional reporting by Ilze Filks, Ardee Napolitano, Janis Laizans for Reuters TV, Greta Rosen Fondahn, Marie Mannes, Terje Solsvik and Anna RingstromWriting by Niklas Pollard and Justyna PawlakEditing by Peter Graff, Philippa Fletcher)
