Extreme pressure; Why did the Finnish government resign?

A government that resigns completely for not being able to implement one of its policies is not seen every day.

But this is what the Finnish government cabinet did Friday after failing to reform the country's health and welfare system.

The announcement was made by Prime Minister himself, Juha Sipila, who declared himself "extremely disappointed" at not having realized it.

His government, however, will remain in power provisionally until elections are already scheduled for the month of April.

The generous Finnish social protection system is under heavy financial pressure as a result of the aging of the population, but plans to reform the system continue to be controversial.

Some of Sipila's political opponents have criticized his leader's decision to resign while there are only a few weeks left before the elections.

But Antti Kaikkonen, one of its members, defended the decision made after it became clear that the party was not going to achieve its goal "If anyone asks what political responsibility is, I would say that's an example, "wrote on Twitter.

Sipila, a former entrepreneur turned millionaire and investing in information technology before embarking on politics, had previously stated that he was considering resigning if he did not proceed with a reform.

With these plans, the government hoped to save about 3,000 million euros over the next decade, according to the BBC.

What is the health problem of Finland?

As in many other developed countries, the population of Finland is aging. And this calls into question the sustainability of its current social security system.

As more and more people retire, the cost of pensions and health care also increases.

But these costs are financed by taxes paid by a much smaller labor force than in the past.

In 2018, people over 65 already accounted for 21.4% of the Finnish population, the fourth highest percentage after Germany, Portugal, Greece and Italy, according to the figures d & # 39; Eurostat.

And the Finnish welfare system is also very generous, which makes it relatively expensive.

In this context, the Sipila government's proposal included the centralization of health services at the regional level and the authorization of private enterprises to enter the system.

Discover the latest news in the digital economy, startups, fintech, business innovation and blockchain. CLICK HERE