FinanceDraft

Government of Finland Resigns; Fails to Pass the Social and Health Care Reform

The Prime Minister of Finland, Juha Sipila has officially offered the resignation of his government to the President on Friday, and it has been accepted by the president, the president’s office stated.

Meanwhile, the President of Finland, Sauli Niinisto has requested the government to work further as a transition Cabinet until a new administration is nominated. The legislative elections of Finland are to be held on 14 April.

The reason for submitting the resignation by the Prime Minister is because the Finland government failed to push the healthcare reform system, head of Sipila’s Centre Party which is a parliamentary group mentioned.

Antti Kaikknen posted on twitter saying, “Prime Minister Sipila will offer his resignation because he could not pass the healthcare reform under the regime of his government.”

While addressing a press conference, Sipila mentioned, “The healthcare reform was the main objective of his government, and he has been greatly disappointed by it.” Submitting his resignation to the President has been his own personal decision.

From 2015 onwards, Sipila has run the coalition government which was formed by his Centre party, Blue reform and conservative National Coalition.

Before becoming the Prime Minister of Finland in 2015, he was a businessman who had earned millions working as an IT entrepreneur and during his tenure had made health and social reform as the top priority of his government in the office. The healthcare and social reforms were very difficult, and they were struggling over it from decades and had also separated successive governments.

The main goal of the healthcare and social reform was to reduce the cost of treating aging people of Finland which is growing rapidly. The government mentioned that the reform could maintain the annual growth of social and healthcare cost to 0.9 percent from 2019 to 2029 instead of 2.4 percent which was predicted. Sipila had earlier said that, if the government fails to push the reform then he would resign from his post.

The decision of Sipila looks to be a strategic move which will allow his Centre Party a free hand during the election.

The resignation of his government is quite surprising, according to Pasi Kuoppamaki, the chief economist at Danske Bank. Now coalition partners will be able to completely focus on elections campaigns without working closely. This will have no impact on the economy of Finland.

Sipila’s decision also indicates that the government was unable to collect the needed support to pass the healthcare reform with the help of parliament.

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