Finland Green League backed away from a threat to leave the six-party coalition in protest over the country’s expansion of nuclear power.
Finland’s economy shrank less than economists estimated in the fourth quarter, easing pressure on Prime Minister Jyrki Katainen’s government as he struggles to contain debt growth in the northernmost euro member.
Finland’s government is abandoning a target to halt debt growth by the end of its term next year.
Finland’s Prime Minister Jyrki Katainen wants the opposition’s support for a new austerity plan to ensure the country retains its AAA credit rating.
Finland entered its third recession in six years, preliminary data showed, as government efforts to halt debt growth collided with the longest industrial slump in 20 years.
As the euro area surfaces from its worst crisis on record, the bloc’s best-rated member and a key proponent of austerity is losing jobs and gaining debt.
The euro area’s north-south policy divide is narrowing along with bond spreads.
Finnish Prime Minister Jyrki Katainen urged voters to embrace more moderate policies as he cautioned against the threat to Europe posed by a surge in extremists bent on splitting the euro area.
Finland, reeling from a slump in its two main industries, is finding that a weak economy has turned a number of its businesses into attractive acquisition targets.
Finnish Prime Minister Jyrki Katainen said his government is monitoring the nation’s housing market to ensure record-low euro-zone rates don’t fuel risks that would warrant regulatory intervention.