Finnish gov't resigns after healthcare reform fails

Finnish President Sauli Niinisto accepted the resignation of the government led by centrist Prime Minister Juha Sipila, national broadcaster Yle said on Friday morning.

Finnish Prime Minister Juha Sipila speaks at a press conference after handing in his letter of resignation to Finnish President Sauli Niinisto, in Helsinki, Finland, 08 March 2019. The Finnish government's collapse is mainly due to the failure passage of social and health care reform in parliament. The cabinet will continue to work in caretaker capacity.[Photo: IC]

Officials said the resignation was mainly due to the virtual failure of the coalition government's plan to reform the public healthcare system, which has been crucial to the ruling coalition's plan to balance public finances.

The president asked the government to complete its term in office and serve as a caretaker before a new cabinet is sworn in. Observers said it will not make much difference as its term in office is nearly over and the parliamentary election is due in April.

Originally rolled out as a structural reform, the healthcare reform plan became part of a political package in late 2015 that also included local government reform. However, the package was repeatedly met with challenges in the parliament, and time eventually runs out as the parliament goes into recess before the upcoming election.

Analysts said on Friday that the reform of the healthcare system, which will see it opening up to profit-seeking private operators, was too complex to be carried out in time.

When beginning his term as prime minister in 2015, Sipila said he would either "bring results" or resign. Commentators have said that Sipila now chose to go as the key reform failed.

In a brief press conference on Friday morning, Sipila said he was immensely disappointed. He said he listened to his "inner voice."