Left-center coalition govt negotiation continues

The negotiation about forming a new center-left government entered the third week on Monday.

According to the original plan, a government program was supposed to have been ready by last Friday. The government-negotiator, Sosialidemokraattinen Puolue (Social Democratic Party of Finland-SDP) leader Antti Rinne, has now predicted the program would be completed this week. Thus appointment of a new cabinet would be possible during the first weeks of June.

Rinne envisions a cabinet that would comprise his SDP, Suomen Keskusta (Centre Party of Finland), Vihreäliitto (Green League), Vasemmistoliitto (Left Alliance), and Suomenruotsalainenkansanpuolue (Swedish People's Party of Finland-RKP).

Economic and taxation issues were reportedly wide open when the talk resumed on Monday. The Center has opposed worsening of the position of entrepreneurs while the Social Democratic would be willing to reduce some support systems and increase taxation of unlisted companies.

The financial gap between the suggestions of various working groups and the fiscal possibilities is wide, local media said. In a door step briefing outside the closed door meetings on Monday, Rinne promised progress in the fiscal guidelines.

Rinne and Vihreät leader Pekka Haavisto said on Monday the results of the European Parliament elections would not impact the Finnish government negotiation. But local observers have said the psychological ability of the Keskusta to compromise may have been worsened. Following the loss in the national parliamentary election, the Keskusta suffered a stunning defeat now also in the EP election.

The Keskusta scored success in the health care reform policies last week. In one of the few agreements confirmed, the negotiators said health care would be reorganized on the basis of 18 provinces. The plan is similar to what the care-taker Prime Minister Juha Sipilä agreed upon with the conservatives in 2015.

Initially after the election defeat in April, the Keskusta announced it would stay in opposition. However, inside the party those supporting cooperation with the left got the upper hand and the party joined the negotiation.

The upcoming Finnish presidency of the EU in July forms a deadline for the talks.