The party gained votes in 1994, but the governing coalition lost its majority. While Bildt stayed on as the Moderate Party leader, failing to unite with the Greens, the non-socialist parties failed to return to government after the election in 1998 as well. Bo Lundgren replaced him and led the party in the disastrous general election of 2002, much owed to his alleged neoliberal stances, for which Lundgren continues to receive praise from younger members. Former head of the Moderate Youth Fredrik Reinfeldt was elected as the new party leader in 2003.
