Finland's government will resign today after ditching plans to reform the healthcare system, a key policy, the president's office and an ally of Prime Minister Juha Sipila said.
Niinisto who accepted the stepping down letter urged the government to stay on a a transition governance system to facilitate the appointment of another resignation.
"Prime Minister Sipila requests to resign because the healthcare reform can not be accomplished during this government term", tweeted Antti Kaikkonen, the Head of Sipila's Centre Party's parliamentary group.
Sipila tendered in the resignation letter of his government to President Sauli Niinisto on Friday, March 8.
Friday's decision comes before Finland holds parliamentary elections on April 14 to renew Finland's 200-seat Eduskunta assembly. They resulted in the formation of a three-party government coalition between the "Finnish Centre", the National Coalition Party and the "True Finns". But he insisted that Finland "needs a reform", indicating the issue is likely to play a large role in elections and the next government's mandate. "The snapshot of the situation that I got from the Parliament obliged me to examine if there was a possibility of continuing the reform process. I take responsibility for the failure".
The reform tried to reorganize the welfare state amid an aging population and cut public spending by $3.4 billion in the next 10 years - an ambitious aim that many parties have tried and failed to achieve in the past.
Finland's outgoing Prime Minister Juha Sipila said on Friday he was "hugely disappointed" that his cabinet had to resign over its failure to pass a long-planned healthcare reform.
Sipila had previously said he would dissolve his centre-right coalition government if it failed to push through its healthcare and local government reform.