Danish PM Thorning-Schmidt concedes election defeat

Danish Prime Minister Helle Thorning-Schmidt conceded defeat in Thursday's general election and resigned as Social Democratic party leader after a record score for an anti-immigration party lifted the opposition right-wing bloc to victory.

"Dear friends, I have decided to step down and therefore our party now has to find another leader," she said, her voice shaking.

"Tomorrow I will go to the Queen and tell her that the government is stepping down. Now it is up to Lars Lokke Rasmussen to try to form a government," she added, referring to the leader of the main right-wing party Venstre.

The anti-immigration Danish People's Party (DPP) unexpectedly became the second-largest winners from the vote, helping the right-wing opposition to victory in a race that pollsters had described as too close to call.

Thorning-Schmidt's approval ratings languished for most of her four-year tenure as the economy dipped in and out of recession and her centre-left coalition cut benefits and lowered taxes.

But she rebounded in opinion polls after calling the election three weeks ago as economic growth returned and by talking tough on immigration.