Ljubljana  - Slovenia's Social Democrats won parliamentary elections by a one-seat margin, election officials confirmed Monday, clearing the way for a new government in the small European Union nation.

Prime Minister Janez Jansa's conservative Slovenian Democrats had refused to concede defeat after the September 21 voting, but after absentee votes were counted Monday they signalled they would not challenge the outcome.

Social Democratic leader Borut Pahor, 44, a European Parliament member, was expected to head a new centre-left government including at least three coalition partners.

His party won 30.5 per cent of the vote and 29 seats in the 90- seat parliament, while Jansa's centre-right group won 29.3 per cent, or 28 seats.

Many analysts believe Jansa's combative style and late-breaking corruption allegations - which he strongly rejected - helped his opponent.

Slovenia, sandwiched between the Alps and the Adriatic, was the richest part of former Yugoslavia and won its independence in a 10- day war in 1991.

It joined the EU in 2004 and is the only former communist country to switch to the euro, although the changeover ignited inflation and triggered widespread discontent. (dpa)