Finland’s coalition government resigned.
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Finland’s coalition government resigned.
HELSINKI (Reuters) - Finland’s coalition government resigned on Friday a month ahead of a general election, saying it could not deliver on a healthcare reform package that is widely seen as crucial to securing long-term government finances.
Nordic countries, where comprehensive welfare is the cornerstone of the social model, have been among the most affected. But reform has been controversial and, in Finland, plans to cut costs and boost efficiency have stalled for years.
“The picture I’ve got over the last few days from parliament forces me to draw conclusions. There is no way ahead. I am hugely disappointed,” Centre Party Prime Minister Juha Sipila told reporters at a news conference.
The reforms expected to generate savings by creating 18 new regions to organize healthcare services instead of the 200 entities that are currently responsible. Critics said the scale of the projected savings was unrealistic.
Other Nordic countries have also grappled with the need to cut costs. Sweden is to gradually raise its retirement age and has opened up parts of the healthcare system to the private sector in a bid to boost efficiency.
Denmark will gradually increase the retirement age to 73 - the highest in the world - while cutting taxes and unemployment benefits to encourage people to work more.
The problem has been particularly acute in Finland where the financial crisis of 2008-9 magnified the effects of demographic changes such as a rapidly declining birth rate.
https://www.reuters.com/article/us-finland-government-idUSKCN1QP0R6?fbclid=IwAR1w4jBsCh79ZNnWlQ9i5CLiN3CC6A1Oa89ttepnGmx7kY0UaxPFL-9BseA
The welfare state is a Ponzi scheme that requires the pool of workers to expand at the same rate as the pool of non workers.
That's not happening. People don't have 4 kids paying into the system to support them during their twilight years.
Nordic countries, where comprehensive welfare is the cornerstone of the social model, have been among the most affected. But reform has been controversial and, in Finland, plans to cut costs and boost efficiency have stalled for years.
“The picture I’ve got over the last few days from parliament forces me to draw conclusions. There is no way ahead. I am hugely disappointed,” Centre Party Prime Minister Juha Sipila told reporters at a news conference.
The reforms expected to generate savings by creating 18 new regions to organize healthcare services instead of the 200 entities that are currently responsible. Critics said the scale of the projected savings was unrealistic.
Other Nordic countries have also grappled with the need to cut costs. Sweden is to gradually raise its retirement age and has opened up parts of the healthcare system to the private sector in a bid to boost efficiency.
Denmark will gradually increase the retirement age to 73 - the highest in the world - while cutting taxes and unemployment benefits to encourage people to work more.
The problem has been particularly acute in Finland where the financial crisis of 2008-9 magnified the effects of demographic changes such as a rapidly declining birth rate.
https://www.reuters.com/article/us-finland-government-idUSKCN1QP0R6?fbclid=IwAR1w4jBsCh79ZNnWlQ9i5CLiN3CC6A1Oa89ttepnGmx7kY0UaxPFL-9BseA
The welfare state is a Ponzi scheme that requires the pool of workers to expand at the same rate as the pool of non workers.
That's not happening. People don't have 4 kids paying into the system to support them during their twilight years.
Maddog- The newsfix Queen
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