Economic news

Finland’s right-wing parties strike deal to form government

2023.06.15 16:21


© Reuters. FILE PHOTO: National Coalition chair Petteri Orpo speaks during a news conference at the Parliament House in Helsinki, Finland on Thursday, 27th April, 2023. Lehtikuva/Heikki Saukkomaa via REUTERS/File Photo

By Essi Lehto

HELSINKI (Reuters) – Finland’s conservative National Coalition (NCP), winner of April’s parliamentary election, has reached agreement to form a majority government with the eurosceptic, anti-immigration Finns Party and two smaller groups, its leader said on Thursday.

“All issues have been resolved and the papers are ready,” said NCP leader Petteri Orpo, a fiscal conservative set to become Finland’s next prime minister, referring to the government program.

By getting the NCP, the nationalist Finns, minority-language Swedish People’s Party and the Christian Democrats to agree on a common platform, Orpo shifts Finnish politics to the right and sends left-wing Prime Minister Sanna Marin into opposition.

During 11-week talks over how to govern Finland during the coming four years the Finns and the Swedish People’s Party had struggled to agree on immigration, climate policy and public finances, but reached a compromise in the end.

Orpo’s government is expected to curb the fiscal deficit by cutting unemployment and welfare benefits, and to tighten immigration and loosen environmental commitments.

Each policy area was subject to tough negotiations, however it was not immediately clear how strong each measure would be.

Orpo has wanted to cut taxes and sell off stakes in some government-controlled companies, and said his government’s policy programme would be presented on Friday. He declined to elaborate on any details.

The NCP won 48 seats in the April 2 election, ahead of the Finns with 46, while outgoing Prime Minister Marin’s Social Democrats came third with 43 elected members of the 200-seat parliament.

To secure a majority, Orpo included the Swedish People’s Party, which holds nine seats, and the Christian Democrats with five, bringing the total support to 108.

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