Denmark's new centre-right government takes power

Lars Lokke Rasmussen was inaugurated as Denmark's new prime minister Sunday, at the head of a minority government made up solely of ministers from his centre-right Venstre party.

Venstre decided to go it alone in government -- despite finishing third in this month's elections -- after unsuccessful coalition talks with the anti-immigration Danish People's Party (DPP), who finished second.

Rasmussen and his ministers had an audience with Queen Margrethe II as he formally succeeded Helle Thorning-Schmidt as prime minister.

"We are perfectly aware that we are a minority government that will have to work in cooperation," Rasmussen told the media as he left the palace in Copenhagen.

Thorning-Schmidt's Social Democrats, despite coming first in the election with 47 seats, were unable to form a government as the right-wing bloc won an majority overall.

While minority governments are common in Denmark, the Venstre administration is set to be very weak, holding just 34 lawmakers in the 179-seat parliament.

Coalition talks with the DPP broke down over Venstre's plans to slash taxes for Denmark's highest earners. The DPP said it could not accept the proposal after it had campaigned for increased pensions and healthcare credits.

Venstre will now have to negotiate with the DPP and two smaller right-wing parties, the Conservative People's Party and the libertarian-leaning Liberal Alliance party, every time it wants to pass a law.

In a similar situation in 1973, a Venstre administration with just 22 seats in parliament only lasted 14 months before collapsing and giving way to a left-wing government.

Rasmussen's new cabinet has 17 members, three less than his predecessor's. Five of them are women.

Rasmussen was previously prime minister between 2009 and 2011. His last time in power was marked by controversies over excessive spending that made him unpopular with the public.

The Social Democrats were due to hold an extraordinary congress Sunday afternoon to elect a new party leader after Thorning-Schmidt resigned. Former justice minister Mette Frederiksen, 37, is the favourite to win.