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Finland prime minister to form new coalition government

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Finland prime minister to form new coalition government

Finnish Prime Minister Juha Sipila is ending a three-party center-right coalition, as he plans to remove nationalist Finns Party from the coalition after the party recently elected Jussi Halla-aho, who is in favor of tough immigration policies, as its new leader, Reuters reported. The Finns Party also replaced three deputy leaders with anti-immigrant hardliners.

The Center Party and National Coalition Party, which together hold 86 seats in the 200-seat parliament, have approved the break-up, citing differences in core values and over immigration and EU policies, according to the report. Sipila will seek the approval of the country's president for the government's resignation, with a plan to team up with others, believed to be the Swedish People's Party and Christian Democrats, as soon as possible.

Yields on the country's 10-year bonds edged higher, widening the spread over benchmark German Bund yields to its greatest level in nearly three weeks, Reuters reported.

A new coalition with these two smaller parties, which are willing to negotiate, would reportedly secure a narrow majority of 101 seats.

Halla-aho believes that Finland should leave the European Union, The Guardian reported.