Which route the party chooses next may affect the government's survival, as well.
Current leader Jan Björklund is leaving later this year after taking the helm in 2007. He is the second longest serving party leader in Swedish parliament, behind Jimmie Åkesson of the Sweden Democrats.
Speculations for who will take over started straight after Björklund's announcement on Wednesday. But all political commentators seem to agree there's no clear successor.
"We stand in front of difficult choices. The political landscape in Sweden does not look like it used to, so it is a very important decision," the chairman of the party's election committee Olle Schmidt told Swedish Radio.
Also on Thursday, the party's economic spokesman Mats Persson announced he would leave his post within the party. Persson has been named as a possible successor to Björklund.