Finland’s cabinet quits over failure to deliver healthcare reform

HELSINKI, (Reuters) - Finland’s coalition government resigned yesterday 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.