Eurosceptic party makes strong gains in Finnish election

EUROPE HAS another EU-critical party to contend with after a record number of Finnish voters backed the populist True Finns party in yesterday’s general election.

Nearly one-fifth of voters backed the nationalist, EU-critical party, opposed to euro zone bailouts, to make it Finland’s third-largest party. Victory by the True Finns, in a photo finish with two larger parties, marks a dramatic shift in Finland’s political landscape and EU relations.

“This is a victory of common sense, a victory for the Finnish people,” said leader Timo Soini to cheering supporters. He described as “historic” his party’s record 19 per cent result – a four-fold increase on the last election.

The strategy of opposing euro zone bailouts had paid off and would, Mr Soini promised, lead to at least “an invitation to coalition talks”.

The conservative National Coalition Party topped the poll with 20.4 per cent. Despite a small loss of votes, it held a slim lead that should allow leader and outgoing finance minister Jyrki Katainen become prime minister. The opposition Social Democrats (SDP) placed second on 19.1 per cent and appeared headed for power as junior partner in a two-party coalition.

But the traditionally pro-EU SDP could pose a dilemma as coalition partner for Mr Katainen; to halt voter desertion to the True Finns, the SDP ran its election campaign against “blank cheque bailouts”.

“We’ve solved more difficult things,” said Mr Katainen of the task ahead. “Finland has always been a country that solves problems, not causes them. I think we can form a majority government that solves Finland’s problems and shoulders its responsibility in the EU.”

The biggest loser in the poll was prime minister Mari Kiviniemi and her Centre Party, which was heading for opposition after haemorrhaging voters to the True Finns to finish fourth on 15.8 per cent.

Analyst Risto Uimonen forecast the “toughest coalition negotiations” in 40 years, an unstable parliament and a challenge for Mr Soini – even if his True Finns remain in opposition.

“A large number of new people arriving in parliament will cause confusion,” said Mr Uimonen. “The bigger the parliamentary party the harder it is to control.”

Analysts predict the vote will alter Finland’s previously exemplary relationship with EU partners. The True Finns, with help from the SDP, turned yesterday’s vote into a referendum on the Portugal bailout. That put the coalition parties on the defensive about the third EU bailout deal in a year and forced all political leaders to adopt new, tougher language towards Brussels.

With potent, populist slogans, the True Finns questioned Finland’s EU consensus and amplified popular resentment of EU bailouts by rekindling memories of Finland’s own – single-handed – struggle with its financial crisis two decades ago.

The outgoing government postponed a vote on Finland’s participation in a Portuguese bailout – a contribution of loans and guarantees worth more than €1 billion – saying it was the responsibility of the new parliament. Finland has already pledged about €8 billion to the permanent EU bailout fund.

Added to the populist formula of the True Finns were fears about immigration and the effect of globalisation on jobs, including concerns about telecoms giant Nokia being on the ropes and the traditional forestry industry in decline.

Sensing a populist shift, leading Finnish companies used the usual front-page advertising space of the leading Helsingin Sanomatdaily to warn that Finland would be hit badly as an exporting nation if the financial crisis spread within the euro zone.