COPENHAGEN, Denmark (AP) — Hours after being tapped as Sweden's first female prime minister, Magdalena Andersson resigned Wednesday after suffering a budget defeat in parliament and her coalition partner the Greens left the two-party minority government.

The government's own budget proposal was rejected in favor of one presented by the opposition that includes the right-wing populist Sweden Democrats. Sweden's third-largest party is rooted in a neo-Nazi movement. The vote was 154-143 in favor of the opposition's budget proposal.

Andersson, leader of the Social Democratic party, decided it was...