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Finns Vote Center Party

DW staff / AFP (th)March 19, 2007

Finnish voters gave Prime Minister Matti Vanhanen's party a narrow victory. The outcome will likely mean a shakeup in the ruling coalition with the conservatives gaining cabinet posts.

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Matti Vanhanen's party won a narrow victoryImage: AP

Vanhanen said his Center Party hasn't decided which parties will form the new government. But it seems unlikely that the Center Party will continue ruling with the Social Democrats, who were the big losers in Finland's parliamentary election on Sunday.

It seems more likely that the conservative National Coalition Party will gain cabinet posts, shifting the government from center-left to center-right.

The Center Party won 23.1 percent of votes, making it the largest vote getter. Yet the margin of victory is slim. The Center Party holds only 51 of 200 seats in parliament, just one more than the 50 won by the National Coalition Party, which has 22.3 percent of votes.

The Social Democrats, who have placed first or second in every election since 1962, were the big losers in Sunday's parliamentary election in Finland, coming in third place with 21.4 percent of votes and 45 seats.

While the Center Party could continue with the Social Democrats and a smaller third party, that's unlikely, Helsinki University political scientist Tom Moring told AFP.

"It would be pretty difficult to exclude the conservatives from government," Moring said.

Vanhanen, 51, said he expected tough negotiations when forming the government. Social Democratic Party leader Eero Heinaeluoma said "the government issue remains open."

Conservatives likely partners

Helsinki Stadtansicht Kalenderblatt
Finland's economy continues to boomImage: AP

"The people wanted the conservatives to grow, that should also be reflected in the government," conservative party leader Jyrki Katainen said.

Voters focused on issues such as health care, job creation and caring for the elderly. Voter turnout was low Sunday, at 67.8 percent compared to 70 percent in 2003.

Vanhanen, a former journalist, has become a popular prime minister since being appointed in 2003. His image is helped by Finland's robust economy. The country had 5.5 percent growth in 2006. Unemployment has fallen steadily in recent years. There's a budget surplus and purchasing power remains strong.

During the campaign, Vanhanen promised to bring unemployment to below six percent during the next parliamentary term and to enact further tax cuts for families and business, building on the 2.7 billion euros (3.53 billion dollars) in cuts already introduced since 2003.

He also committed the government to spending more on health and care for the elderly.

Vanhanen will tender his government's resignation on March 28. The formation of a new government is expected in mid-April.

According to recent Eurobarometer statistics, Finns are among the most content people in Europe. Sixty-seven percent are unconcerned about their future pension, in second position behind Danes, and 88 percent say they are satisfied with their quality of life.