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Last Updated: Sunday, 15 October 2006, 01:13 GMT 02:13 UK
Sweden's trade minister resigns
Swedish trade minister Maria Borelius
Ms Borelius had only been in office for one week
Sweden's trade minister has resigned over allegations of tax evasion after just one week in office, saying media pressure has made her life impossible.

Maria Borelius earlier admitted hiring nannies without paying taxes and employers' fees.

Other government figures have also been under fire, including Culture Minister Cecilia Stego Chilos who admitted failing to pay television licence fees.

But PM Fredrik Reinfeldt has ruled out any major changes for his coalition.

The prime minister said it would be "a mistake to believe that the [media] reports of the last days will be decisive for the alliance's policies".


Ms Borelius issued a statement saying she was giving up both her cabinet post and her seat in parliament because media pressure had made "a normal family life impossible".

Swedish trade minister Maria Borelius's summer house
Ms Borelius faces allegations of avoiding property tax

She has also faced media allegations that her wealthy family avoided property taxes on a summer house and failed to notify the authorities about share deals.

She has welcomed a government inquiry into her financial dealings over the property, Reuters reports.

It has also emerged that Ms Borelius and another minister did not buy the 1,500 kronor (109; US$200) a year television licence - along with Ms Chilos who is responsible for administering the fee.

The scandals have hit the centre-right government of Fredrik Reinfeldt only a week after the new leader named his cabinet.

A close-run election in September saw former prime minister Goran Persson's Social Democrat party ousted after 12 years in power.

The Social Democrats have held power in all but nine years since 1932.

Mr Reinfeldt's four-party alliance campaigned on a pledge to reform Sweden's generous welfare model which relies on some of the world's highest taxes.

How the government scandal unfolded

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