This chapter analyzes how Sweden’s party system has evolved since 1990, in the context of two financial crises that affected the country in different ways. The electorate has shown signs that its traditional ties with political parties have not remained intact, as the country faces the decline of social democracy. While the party system appears to be resilient in the aftermath of the latest economic crisis, we argue that the debate on the survival and maintenance of Sweden’s comprehensive welfare model is instrumental to understand recent changes. Both crises added pressure to this discussion and encouraged the electorate to search for political alternatives, amidst the growth of the radical right in the country.