Sweden is to recognise the state of Palestine, making it the first long-term European Union member country to do so.

Swedish Prime Minister Stefan Löfven said the conflict between Israel and Palestine can only be solved with a two-state solution.

He was speaking during his inaugural address in parliament.

Mr Löfven presented his Cabinet today - consisting of 23 ministers - in a minority government with the Greens.

The United Nations General Assembly approved the de facto recognition of Palestine in 2012, but the EU has yet to give official recognition.

There is likely to be strong criticism of Sweden from Israel, as well as from the United States - which maintain that an independent Palestinian state should only emerge through a negotiated process.

While some EU countries - such as Hungary, Poland and Slovakia - recognise Palestine, they did so before joining the EU.