The cabinet resigned on 12 October 1979 following the 1979 general election to make way for a coalition majority government led by Thorbjörn Fälldin.

Both the Social Democratic and Moderate parties held positive views regarding nuclear power and it was assumed that the government wouldn't have any difficulties passing the bill.

While Olof Palme, the Social Democratic leader, had criticized the Fälldin cabinet for unnecessarily delaying the expansion of nuclear power in the past, Palme and his party did a complete turn-around on the issue, demanding a popular referendum to decide the future of nuclear power on 4 April 1979.

However, in the spring of 1979, the Centre Party opposed the bill due to concerns over financial inconsistencies in its funding.

In December 1978 it was revealed that while Sweden was supporting the East Timor independence movement, the government was simultaneously allowing the export of arms to the occupying Indonesian forces.