Finnish Prime Minister Juha Sipila will announce his government’s resignation at his official residence, Kesaranta, in Helsinki, Finland, March 8, 201
9. Lehtikuva / Seppo Samuli via REUTERS
HELSINKI (Reuters) – The Finnish Government resigned on Friday ditching plans to reform healthcare, a key policy, said the Finnish president’s office and turned the country into a political limbo.
The President approved the resignation of Prime Minister Juha Sipila and asked his government to continue as guardian until a new cabinet has been appointed.
The government’s collapse comes just a month before the parliamentary elections fall due to Sipila’s failure to push through the reforms. The changes were crucial for the tripartite coalition plan to balance public finances.
Financial constraints collide with the health care costs imposed on the Finnish population with rapid aging. But reducing these costs is a major political obstacle in a Nordic country that has historically provided a comprehensive and expensive healthcare system.
Sipila resigned “because health care reform cannot be achieved during this reign,” wrote Antti Kaikkonen, head of Sipila Center Party’s parliamentary group, on Twitter. Several governments have tried to push through reforms in various forms over the past twelve years.
“Since the election was already closed on April 14, the government’s resignation is not at all a big deal at this point in time. Yet, it creates some ugly headlines, wrote Nordea’s chief analyst on Twitter.
According to the government, the reform had been able to cure the annual growth of Finland’s public social and health care costs to 0.9 per cent from the current estimate of 2.4 per cent between 2019 and 2029.
Sipila had previously said that he would solve his center – Proper coalition government if it failed to push through its