After the convincing center-right electoral victory in the 2006 elections, one might expect that social democratic hegemony in the country might be coming to an end and with it the „Swedish model” of generous, universalistic welfare policies. Even though the Social Democrats have their poorest electoral performance since universal suffrage, one could easily argue that the election signifi ed a victory for social democratic hegemony. In general, Social Democrats did not lose the elections because the voters turned against traditional social democratic welfare policies, but rather the voters perceived that the Social Democrats had neglected traditional welfare policies like full employment. Instead, the Conservatives (known in Sweden literally as the „Moderate Meeting Party”) moved away from their previous market-liberal policies, repackaged themselves as „New Moderates” and claimed to be the new workers’ party. The article describes Swedish social policy reforms implemented by the „New Moderates” in the fi eld of labour and tax policies, healthcare, pensions and the family policies.