Sweden faces political deadlock after the far-right gained a decisive position in the country's legislative elections on Monday. Social Democratic Prime Minister Stefan Lofven's "red-green" left bloc enjoys a razor-thin one-seat lead over the center-right opposition Alliance. Neither of the two blocs obtained a majority, making the far-right Sweden Democrats the third-biggest party and potential king-maker. Sweden Democrats leader Jimmie Akesson said the party has a long list of demands before joining any negotiations. Guy Henderson reports from Stockholm.

They were on opposing sides on the campaign trail. But as the polls opened at Stockholm's Katarina Sodra Skola voting station, party volunteers stood together to hand out voting cards.

There was no sign of the divisions that have marked the build-up to this vote.

TOVIK RASMUN VOTING STATION VOLUNTEER "This represents our feeling of democracy, we can talk to each other."

Guy: There is one party missing from this line-up.

"Yes, perhaps there is."

Guy: The Sweden Democrats aren't here.

"Oh, no no they're not here"

This affluent neighbourhood's hardly fertile ground for the populists, though there was a sense of what was at stake.

Guy: Does this stand out from the others?

"Yes, I think it does, the situation around the different blocs is so tight this time."

Each party has its own solution to the cracks in Sweden's welfare state. The official end of campaigning didn't stop the Sweden Democrats from voicing theirs.

JIMMIE AKESSON LEADER, SWEDEN DEMOCRATS "Stefan Lofven has prioritised asylum and immigration ahead of welfare, and we would reverse that priority."

The prime minister himself stayed silent, the Social Democrat leader instead making his final plea the night before.

STEFAN LOFVEN SWEDISH PRIME MINISTER "We will never get used to hating. We will resist, we will stand up for equality."

They and the centre-right Moderate opposition were expected to lose votes.

Guy: Are you nervous Prime Minister?

Lofven: No.

Still, the first exit polls suggested the incumbents had held on. Then, a period of uncertainty.

GUY HENDERSON STOCKHOLM "Exit polls indicate the Social Democrats will remain Sweden's largest political party. But whether left-wing parties collectively will still form the largest bloc remains too close to call."

Which one gives the right to try and form a coalition government remains ambiguous. So, on the night, that left only the Sweden Democrats celebrating more big gains.

JIMMIE AKESSON LEADER, SWEDEN DEMOCRATS "I am prepared to negotiate with all the other parties, I am prepared to cooperate with all the other parties. In particular, I am inviting (Moderate Party leader) Ulf Kristersson to a conversation about how Sweden can be ruled in the future."

Taking up that offer might prove decisive but also highly controversial. More likely perhaps, days, weeks, even months of uncertainty. GH, CGTN, STOCKHOLM.