By Sabina Zawadzki and Alistair Scrutton
COPENHAGEN/STOCKHOLM, July 1 (Reuters) - A policy impasse in Sweden and a newly installed but fragile minority government in Denmark are the latest signs that the Nordic political consensus model is fraying at the hands of eurosceptic and anti-immigration parties.
Danish Liberals leader Lars Lokke Rasmussen was forced to form a minority government with just 34 seats of 179 in parliament after failing to strike a coalition deal with the eurosceptic Danish People's Party (DF) over the weekend.
Only one government, in 1973, had fewer members in parliament - and that lasted for just 14 months.
Meanwhile, a minority government in Sweden, which avoided joining forces with the anti-immigrant Sweden Democrats, has failed to pass a budget and appears unable to find initiatives that will cool a housing market and reduce household debt.
"The country is more divided than it used to be. People have lost in a sense their attachment to the parties that they used to have," said Rebecca Adler-Nissen, assistant professor at Copenhagen University, in comments about Denmark that could equally apply in Stockholm.
In Finland, the eurosceptic and anti-immigrant Finns Party has entered a coalition, with its leader Timo Soini named as foreign minister. With the coalition just a month old, there are already tensions over spending cuts and immigration policy.
For decades, the Nordics were governed by consensus between the centre left and centre right. Minority cabinets were common, but pragmatism across aisles allowed bills to be passed.
In Sweden's last centre right government the opposition Greens supported labour reform while in Denmark there has long been an understanding between mainstream parties to keep European Union ties stable if not closer.
That is changing. Just before Denmark's June election the Liberals agreed to support Britain's bid to change its relationship with the EU, a position previously only held by DF.
On Tuesday, Rasmussen's foreign minister said some controls would be placed around the border with Germany to catch illegal migrants and smugglers, fulfilling, if only partially, demands by DF to impose border controls.
Though the Liberals were not able to form a coalition, they will still rely heavily on DF's support to pass legislation. Budget negotiations may be hard, however - DF wants to increase state spending contrary to Liberals policy.
"If the chance arises and the government cannot find a majority on the budget ... then I am sure the Social Democrats will take the opportunity to topple the government," said Rune Stubager, professor at Aarhus University's Department of Political Science.