Sweden takes EU presidency

STOCKHOLM: Sweden takes over the EU´s rotating presidency from January 1 vowing to maintain unity on Ukraine and uphold free trade in the face of calls for a tougher response to US green subsidies.

But the main questions for Stockholm as it takes the reins of the 27-nation bloc at this tumultuous time could be how new dynamics in its own domestic politics play out on the European stage.

After eight years of centre-left rule, the government of conservative Prime Minister Ulf Kristersson formed in October relies on an unprecedented alliance with the far-right Sweden Democrats for a majority in parliament.

While the nationalist party has dropped its earlier calls for Sweden to quit the EU, its hardline stance in key areas such as immigration looks set to cause friction at home and curb the room for manoeuvre.