Home News Finland's government resigns over failed healthcare reform

Finland’s government resigns over failed healthcare reform

Finnish Prime Minister Juha Sipila announces his government's resignation at a news conference at his official residence, Kesaranta, in HelsinkiImage copyright

Image caption

Mr Sipila announced his government’s resignation in Helsinki on Friday

Finland’s entire government has resigned over its failure to achieve a key policy goal on social welfare and healthcare reform.

Prime Minister Juha Sipila said he was “hugely disappointed” in the outcome.

Finland’s extensive welfare systems are under financial pressure as the nation’s population ages, yet reform plans remain politically controversial.

Mr Sipila’s government is expected to stay on in a caretaker capacity until a planned election in April.

Some political opponents questioned the need for the high-profile resignation of the Centre Party government with just weeks to go until the election.

But Antti Kaikkonen, chair of the Centre Party, defended the decision, which was taken after it became clear the party could not achieve its goals.

“If anyone asks what political responsibility means, then I would say that this is an example,” he tweeted.

Mr Sipila, a former IT entrepreneur who made millions before entering politics, had previously said he would consider resigning if his primary reform policy failed.

The government had hoped its planned reforms would save up to €3bn (£2.6bn) over the next decade.

What is Finland‘s healthcare problem?

Like many developed nations, Finland has an ageing population that is putting financial pressure on its social welfare systems.

As an increasing number of people live longer in retirement, the cost of providing pension and healthcare benefits can rise. Those increased costs are paid for by taxes collected from of the working-age population – who make up a smaller percentage of the population than in decades past.

In 2018, those aged 65 or over made up 21.4% of Finland’s population, the fourth highest after Germany, Portugal, Greece, and Italy, according to Eurostat.

Finland’s welfare system is also generous in its provisions, making it relatively expensive. Attempts at reform have plagued Finnish governments for years.

Mr Sipila’s proposed solutions included creating regional authorities for health and welfare services, rather than the local municipalities that currently manage the system, and offering including private companies in the healthcare system to a greater extent to offer “freedom of choice”.

Mr Sipila’s government also famously experimented with a guaranteed minimum income scheme – giving €560 (£480) a month to 2,000 unemployed people as a basic income with no conditions attached.

Initial results suggested the pilot scheme left people happier, but still unemployed.

Mr Sipila’s Centre Party has been in a centre-right coalition government since 2015. Since a 2017 re-negotiation, the government has been formed of the Centre Party, the National Coalition, and Blue Reform.

The opposition Social Democrats have taken the lead in recent polls by several percentage points.

Source link


Please enter your comment!
Please enter your name here

Must Read

GOP rep says intel on Iran is ‘credible’

Rep. Will HurdWilliam Ballard HurdDemocrats talk subpoena for Mueller Here are the eight Republicans who voted with Democrats on the Equality Act House...

Guess Which ‘Real Housewife’ Is Expecting a Baby?

Joanna Krupa from The Real Housewives of Miami announced today she is pregnant. The model...

Fiat Chrysler-Renault tie up: What the maker of Jeep could gain

Fiat Chrysler Automobiles and Renault are reportedly in talks that could result in merging vast swaths of their businesses, a move...

Netflix Acquires Cannes Grand Prix Winner ‘Atlantics’ in Global Push

Netflix has signaled that Africa holds massive untapped potential for their expansion -- and even Thierry Fremaux recognizes the continent is about to...

The savage genius of SoftBank funding competitors

Venture capitalists aren’t supposed to make their portfolio companies battle to the death. There’s a long-standing but unofficial rule that investors shouldn’t fund...
Download Premium WordPress Themes Free
Premium WordPress Themes Download
Download WordPress Themes
Download Best WordPress Themes Free Download
free download udemy course
download huawei firmware
Download Best WordPress Themes Free Download