HELSINKI (Reuters) - Finland’s coalition government resigned on Friday a month ahead of a general election, saying it could not deliver on a healthcare reform package that is widely seen as crucial to securing long-term government finances.

Healthcare systems across much of the developed world have come under increasing stress in recent years as treatment costs soar and people live longer, meaning fewer workers are supporting more pensioners.

Nordic countries, where comprehensive welfare is the cornerstone of the social model, have been among the most affected. But reform has been controversial and, in Finland, plans to cut costs and boost efficiency have stalled for years.

“The picture I’ve got over the last few days from parliament forces me to draw conclusions. There is no way ahead. I am hugely disappointed,” Centre Party Prime Minister Juha Sipila told reporters at a news conference.

“We need reforms, there is no other way for Finland to succeed.”

Parliament’s constitutional committee said the reform package was unconstitutional and required significant changes the government did not have time to implement before the scheduled elections.

President Sauli Niinisto accepted Sipila’s resignation but asked his government of his Centre party and the National Coalition Party to continue in a caretaker capacity until a new cabinet has been appointed.

“My government works on a ‘result or out’ principle... one has to carry responsibility in politics,” Sipila said, adding it was his personal decision to resign.

The government had aimed to dramatically slow the increase in healthcare spending over the next decade, reducing the budget to 18.3 billion euros in 2029 against an estimate of 21.3 billion.

NORDIC PROBLEM

The reforms expected to generate savings by creating 18 new regions to organize healthcare services instead of the 200 entities that are currently responsible. Critics said the scale of the projected savings was unrealistic.

Other Nordic countries have also grappled with the need to cut costs. Sweden is to gradually raise its retirement age and has opened up parts of the healthcare system to the private sector in a bid to boost efficiency.

Finnish Prime Minister Juha Sipila announces his government's resignation at a news conference at his official residence, Kesaranta, in Helsinki, Finland March 8, 2019. Lehtikuva/Seppo Samuli via REUTERS

Denmark will gradually increase the retirement age to 73 - the highest in the world - while cutting taxes and unemployment benefits to encourage people to work more.

The problem has been particularly acute in Finland where the financial crisis of 2008-9 magnified the effects of demographic changes such as a rapidly declining birth rate.

Several Finnish governments have tried to push through healthcare reform in different forms over the past 12 years — all have failed.

Sipila had previously said he would dissolve his centre-right coalition government if it failed to push through its healthcare and local government reform.

With election so close, analysts said the effect of Sipila’s resignation would be minor.

“Since elections were already set for 14 April, the resignation of the government is not a big deal at all at this point. Still, it does create some ugly headlines,” Nordea’s chief analyst Jan von Gerich wrote on Twitter.

The latest poll by national broadcaster YLE puts the Social Democrats on 21.3 percent ahead of the National Coalition Party on 16.2 percent and the Centre on 14.1 percent.

Slideshow (6 Images)

In the 2015 general election Sipila’s Centre party topped the poll with 21.2 percent of the vote.

At 9.5 percent of GDP, Finland ranked ninth among EU countries in terms of how much it spent on healthcare in 2016, relative to the size of its economy, according to Eurostat figures. Spending has declined over recent years as a result of sluggish growth.

France topped the rankings at 11.5 percent of GDP with Germany second and Sweden third. Denmark was fifth. Non-EU member Norway would rank fourth.</s>HELSINKI: Finland’s coalition government resigned on Friday a month ahead of a general election, saying it could not deliver on a healthcare reform package that is widely seen as crucial to securing long-term government finances.

 Healthcare systems across much of the developed world have come under increasing stress in recent years as treatment costs soar and people live longer, meaning fewer workers are supporting more pensioners.

 Nordic countries, where comprehensive welfare is the cornerstone of the social model, have been among the most affected. But reform has been controversial and, in Finland, plans to cut costs and boost efficiency have stalled for years.

 “The picture I’ve got over the last few days from parliament forces me to draw conclusions. There is no way ahead. I am hugely disappointed,” Centre Party Prime Minister Juha Sipila told reporters at a news conference.

 “We need reforms, there is no other way for Finland to succeed.”

 Parliament’s constitutional committee said the reform package was unconstitutional and required significant changes the government did not have time to implement before the scheduled elections.

 President Sauli Niinisto accepted Sipila’s resignation but asked his government of his Centre party and the National Coalition Party to continue in a caretaker capacity until a new cabinet has been appointed.

 “My government works on a ‘result or out’ principle… one has to carry responsibility in politics,” Sipila said, adding it was his personal decision to resign.

 The government had aimed to dramatically slow the increase in healthcare spending over the next decade, reducing the budget to 18.3 billion euros in 2029 against an estimate of 21.3 billion.

NORDIC PROBLEM

 The reforms expected to generate savings by creating 18 new regions to organise healthcare services instead of the 200 entities that are currently responsible. Critics said the scale of the projected savings was unrealistic.

 Other Nordic countries have also grappled with the need to cut costs. Sweden is to gradually raise its retirement age and has opened up parts of the healthcare system to the private sector in a bid to boost efficiency.

 Denmark will gradually increase the retirement age to 73 — the highest in the world — while cutting taxes and unemployment benefits to encourage people to work more.

 The problem has been particularly acute in Finland where the financial crisis of 2008-9 magnified the effects of demographic changes such as a rapidly declining birth rate.

 Several Finnish governments have tried to push through healthcare reform in different forms over the past 12 years — all have failed.

 Sipila had previously said he would dissolve his centre-right coalition government if it failed to push through its healthcare and local government reform.

 With election so close, analysts said the effect of Sipila’s resignation would be minor.

 “Since elections were already set for 14 April, the resignation of the government is not a big deal at all at this point. Still, it does create some ugly headlines,” Nordea’s chief analyst Jan von Gerich wrote on Twitter.

 The latest poll by national broadcaster YLE puts the Social Democrats on 21.3 per cent ahead of the National Coalition Party on 16.2 per cent and the Centre on 14.1 per cent. — Reuters</s>Finland’s government resigned on Friday after ditching plans to reform the healthcare system, a key policy, the Finnish president’s office said, throwing the country into political limbo.

The president approved Prime Minister Juha Sipila’s resignation and asked his government to continue as a caretaker government until a new cabinet has been appointed.

The collapse of the government comes just one month before parliamentary elections are due, after Sipila failed to push through the reforms. The changes were crucial to the three-party governing coalition’s plan to balance public finances.

Financial constraints are colliding with the healthcare costs imposed by Finland’s fast-ageing population. But cutting those costs is a major political obstacle in a Nordic country that historically has provided an extensive — and expensive — healthcare system.

Sipila resigned “because the healthcare reform cannot be accomplished during this government term,” Antti Kaikkonen, the head of Sipila’s Centre Party’s parliamentary group, wrote on Twitter. Several governments have tried to push through reforms in different forms over the past 12 years.

“Since elections were already set for 14 April, the resignation of the government is not a big deal at all at this point. Still, it does create some ugly headlines,” Nordea’s chief analyst wrote on Twitter.

According to the government, the reform could have curbed the annual growth of Finland’s public social and healthcare expenses to 0.9 per cent from the current estimate of 2.4 per cent between 2019 and 2029.

Sipila had previously said he would dissolve his centre-right coalition government if it failed to push through its healthcare and local government reform.</s>COPENHAGEN -- Finnish Prime Minister Juha Sipila's centre-right government resigned Friday after the governing coalition failed to agree on and push through a planned social and health reform.

"I take the responsibility for the failure. It has been a huge disappointment to me," Sipila told a news conference, according to public broadcaster YLE. He added that the reform "had been one of our most important projects."

Finland's President Sauli Niinisto accepted Sipila's resignation. The prime minister, who came to power in May 2015, will continue to serve in a caretaking role.

The move comes week before Finland holds parliamentary elections on April 14 to renew Finland's 200-seat Eduskunta assembly. The government's resignation would not change the timetable for next month's elections, the justice ministry said.

The planned health care reform was meant to tackle an aging population, improve efficiency and reduce public spending by 3 billion euros ($3.4 billions) by 2029. Successive governments have so far failed to accomplish the reform.

Sipala's three-party governing coalition held 123 out of 200 seats in parliament. The coalition included his own Center Party, the National Coalition Party and the small populist Blue Reform Party, once part of the euroskeptic True Finns.

Last year, the latter broke up into two parties after internal divisions over tighter immigration policies.

Finland is due to take over the European Union's rotating presidency on July 1.</s>COPENHAGEN -- Finnish Prime Minister Juha Sipila's centre-right government resigned Friday after failing to push through a planned social and health reform.

"I take the responsibility for the failure. It has been a huge disappointment to me," Sipila told a news conference, according to public broadcaster YLE. He added that the reform "had been one of our most important projects."

Finland's President Sauli Niinisto accepted Sipila's resignation. The prime minister, who came to power in May 2015, will continue to serve in a caretaking role.

The move comes week before Finland holds parliamentary elections on April 14 to renew Finland's 200-seat Eduskunta assembly.

The planned health care reform was meant to tackle an aging population, improve efficiency and reduce public spending by 3 billion euros ($3.4 billions) by 2029. Successive governments have so far failed to accomplish the reform.

Sipala's three-party governing coalition included his own Center Party, the National Coalition Party and the small populist Blue Reform Party, once part of the euroskeptic True Finns.

Last year, the latter broke up into two parties after internal divisions over tighter immigration policies.</s>, Helsinki, Finland, Mar 8 – Finnish Prime Minister Juha Sipila’s centre-right government resigned on Friday after failing to push through a flagship social and health care reform package, just five weeks ahead of a legislative election.

There has been a hard fought struggle for the wide-reaching reform for over a decade, dividing successive governments.

Sipila called the failure to pass the reform “a major disappointment”.

He has since 2015 headed a coalition made up of his Centre Party, the conservative National Coalition, and the eurosceptic Blue Reform party, a moderate faction spun off from the far-right.

The three parties were unable to agree among themselves on the package, which Sipila had made one of his top priorities in office. He had repeatedly threatened to resign if the reforms did not go through.

A former businessman who earned millions as an IT entrepreneur before becoming prime minister in 2015, Sipila considered the shake-up as key to cutting the ballooning costs of treating a rapidly ageing population.

The proportion of over 65-year-olds in the Nordic country, which has a population of 5.4 million, is expected to reach 26 percent by 2030.

Among the reforms discussed were a centralisation of services into new regional healthcare authorities — which would take over from the current local municipalities — and the use of more private health care providers, a subject of heated debate.

But the coalition partners were unable to agree on issues such as how much the system should be opened up to give patients freedom of choice, among others.

A recent scandal of neglect allegations that came to light in privately-run elderly care homes helped turn the political mood further against any more privatisation of the country’s healthcare.

Claims that the reforms would bring three billion euros ($3.3 billion) of savings to the country’s welfare bill have also been repeatedly called into question.

Sipila threw in the towel when it became clear the government would not be able to submit a proposal to parliament before the election set for April 14.

“My government works on a ‘results or resign’ principle. I am a man of principle and in politics you have to carry responsibility,” Sipila told reporters, adding: “I am taking my share of responsibility.”

Finland’s President Sauli Niinisto said he had accepted the government’s resignation and asked it to continue on a caretaker basis until a new one has been appointed.

The current cabinet will retain their jobs until a new government is formed after the election, but will only work to finish off business that is already in progress.

Politicians in Finland were split over Sipila’s decision to resign so close to the election.

The head of the opposition Social Democrats, Antti Rinne, told reporters outside parliament the government had turned itself into “a political sitting duck”.

Member of parliament Kalle Jokinen, from the conservative National Coalition Party — a partner in Sipila’s government — said it would have been better to see a working government in place up until the election.

“You could call this a failure for the government,” Jokinen said.

But a member of the parliamentary committee on health and social affairs, Veronica Rehn-Kivi of the liberal Swedish People’s Party, called it a “victory” for the welfare state and individual citizens.

The Social Democrats have been leading opinion polls in the run-up to the election, with Sipila’s Centre party trailing in third place at around 15 percent.

A programme of austerity cuts and tighter benefits rules during his administration has been unpopular in a country where the welfare state is a cherished national asset.</s>HELSINKI (Reuters) - Finland’s government will resign on Friday after ditching plans to reform the healthcare system, a key policy, the president’s office and an ally of Prime Minister Juha Sipila said.

Sipila will officially offer his government’s resignation to the president on Friday at 0800 GMT, the president’s office said in a statement.

The government will hold a news conference at 0845 GMT.

“Prime Minister Sipila will request his resignation because the healthcare reform cannot be accomplished during this government term,” Antti Kaikkonen, the head of Sipila’s Centre Party’s parliamentary group wrote on Twitter.

Earlier on Friday, Finland’s public broadcaster Yle said the government was about to announce that it has dropped plans for major healthcare and social services reform, citing unnamed government sources.</s>The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

COPENHAGEN, Denmark (AP) — Finnish Prime Minister Juha Sipila’s center-right government resigned Friday after the governing coalition failed to agree on and push through a planned social and health reform.

“I take the responsibility for the failure. It has been a huge disappointment to me,” Sipila told a news conference, according to public broadcaster YLE. He added that the reform “had been one of our most important projects.”

Finland’s President Sauli Niinisto accepted Sipila’s resignation. The prime minister, who came to power in May 2015, will continue to serve in a caretaking role.

The move comes week before Finland holds parliamentary elections on April 14 to renew Finland’s 200-seat Eduskunta assembly. The government’s resignation would not change the timetable for next month’s elections, the justice ministry said.

The planned health care reform was meant to tackle an aging population, improve efficiency and reduce public spending by 3 billion euros ($3.4 billions) by 2029. Successive governments have so far failed to accomplish the reform.

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Sipala’s three-party governing coalition held 123 out of 200 seats in parliament. The coalition included his own Center Party, the National Coalition Party and the small populist Blue Reform Party, once part of the euroskeptic True Finns.

Last year, the latter broke up into two parties after internal divisions over tighter immigration policies.

Finland is due to take over the European Union’s rotating presidency on July 1.

The Associated Press contributed to this report.

We are committed to truth and accuracy in all of our journalism. Read our editorial standards.</s>The current cabinet will retain their jobs until a new government is formed after the election, but will only work to finish off business that is already in progress.

The proportion of over 65-year-olds in the Nordic country, which has a population of 5.4 million, is expected to reach 26 percent by 2030.

He has since 2015 headed a coalition made up of his Centre Party, the conservative National Coalition, and the eurosceptic Blue Reform party, a moderate faction spun off from the far-right.

The three parties were unable to agree among themselves on the package, which Sipila had made one of his top priorities in office. He had repeatedly threatened to resign if the reforms did not go through.

A former businessman who earned millions as an IT entrepreneur before becoming prime minister in 2015, Sipila considered the shake-up as key to cutting the ballooning costs of treating a rapidly ageing population.

The proportion of over 65-year-olds in the Nordic country, which has a population of 5.4 million, is expected to reach 26 percent by 2030.

Among the reforms discussed were a centralisation of services into new regional healthcare authorities — which would take over from the current local municipalities — and the use of more private health care providers, a subject of heated debate.

But the coalition partners were unable to agree on issues such as how much the system should be opened up to give patients freedom of choice, among others.

A recent scandal of neglect allegations that came to light in privately-run elderly care homes helped turn the political mood further against any more privatisation of the country's healthcare.

Claims that the reforms would bring three billion euros ($3.3 billion) of savings to the country's welfare bill have also been repeatedly called into question.

Sipila threw in the towel when it became clear the government would not be able to submit a proposal to parliament before the election set for April 14.

"My government works on a 'results or resign' principle. I am a man of principle and in politics you have to carry responsibility," Sipila told reporters, adding: "I am taking my share of responsibility."

Finland's President Sauli Niinisto said he had accepted the government's resignation and asked it to continue on a caretaker basis until a new one has been appointed.

The current cabinet will retain their jobs until a new government is formed after the election, but will only work to finish off business that is already in progress.

Member of parliament Kalle Jokinen, from the conservative National Coalition Party — a partner in Sipila's government — said it would have been better to see a working government in place up until the election.

But a member of the parliamentary committee on health and social affairs, Veronica Rehn-Kivi of the liberal Swedish People's Party, called it a "victory" for the welfare state and individual citizens.

The Social Democrats have been leading opinion polls in the run-up to the election, with Sipila's Centre party trailing in third place at around 15 percent.

A programme of austerity cuts and tighter benefits rules during his administration has been unpopular in a country where the welfare state is a cherished national asset.</s>Finland’s entire government resigned Friday after the governing coalition failed to agree on the welfare state reform, just one month before elections were due to be held.

Juha Sipila has been the country’s prime minister since 2015 after forming a three-party governing coalition with two other right-leaning parties, including the small populist Blue Reform Party, a group that was once part of the eurosceptic True Finns but split up amid divisions over immigration policies.

“I take the responsibility for the failure. It has been a huge disappointment to me,” Sipila said during a news conference, adding that the reform in the works “had been one of our most important projects.”

The reform tried to reorganize the welfare state amid an aging population and cut public spending by $3.4 billion in the next 10 years – an ambitious aim that many parties have tried and failed to achieve in the past.

According to Eurostat data, one-in-five people in Finland are aged 65 or over, the fourth highest in Europe after Germany, Portugal, Greece, and Italy, the BBC reported.

Due to the structure of the Finnish welfare state, the aging population is putting a strain on the system as provisions and benefits are paid by the working-age population.

Finland’s President Sauli Niinisto accepted Sipila’s resignation, though he will continue to serve in a caretaker role until the upcoming election next month produces a new government.

The collapse of the government came just weeks before Finnish voters will head to the polls to vote for the Parliamentary elections. The resignation won’t impact the timetable of the election is will be held on April 14 as previously set.
The entire coalition government of Finland resigns after a failure to deliver on healthcare reform, a month ahead of the country's general election. The coalition, made up of Prime Minister Juha Sipilä's Centre Party, the conservative National Coalition Party and the Eurosceptic Blue Reform Party, were unable to agree on a package that would have slowed healthcare spending over the next decade. The government will be interim until April elections.