Wed, 26 Mar, 2014 12:17:36 AM Dispute over spending limit package 5 components of govt agreed on fiscal adjustment budget FTimes-STT Report, March 26  Left Alliance chairman Paavo Arhinmäki at a press conference spoke about rejection of the government package on Tuesday. Photo – Lehtikuva. The Vasemmistoliito (Left Alliance), one of the components of the six-party alliance government has resigned from the government late Tuesday night following a dispute with the other allies over
the fiscal adjustment package in budget.
The Left Alliance refused to accept the government package after the spending limit talks held among the ruling parties leaders on Monday and Tuesday.
The other five partners of the government, however, accepted the package.
The chief of the left alliance, Paavo Arhinmäki made the announcement for resignation from the government at a press conference when he criticised the spending limit package saying the agreed adjustments on expenditure cuts is greater than the tax adjustments.
“The (agreed package ) decision will hit hard the small and middle income families with children thus this does not meet those conditions for Vasemmistoliito (Left Alliance) to be in the government,” said Arhinmäki.
He also said the fact that there were no index increases on social security benefits the position of low income people is further weakened.
Leaders of the five other components of the government at a press conference along with Prime Minister Jyrki Katainen after approval of spending limits solutions. Photo – Lehtikuva. He criticised the cuts in child benefits saying that it will increase the income gap.
The Left Alliance leader also expressed his dissatisfaction towards the decision made on reimbursement on drug cost.
He said that the decision means that expenditure costs of most patients would increase.
Earlier, in the afternoon the Left Alliance parliamentary group unanimously rejected the spending limit package.
The party said the package had drawbacks and ought to be changed before they could accept it.
Following the resignation of the Left Alliance, two cabinet posts held by the party leader Paavo Arhinmäki and Merja Kyllönen have become vacant.
Arhinmäki held the docket of Minister of Culture and Sports and Merja Kyllönen held post of the Minister of Transport.
Meanwhile, the Prime Minister, Jyrki Katainen expressed his reaction over the resignation announcement by the Left Alliance saying that it was not surprise to him.
Left Alliance chairman, Minister of Culture Paavo Arhinmäki (right) and the the Minister of Transport Merja Kyllönen leave the House of the Estates the Tuesday evening. Photo – Lehtikuva. The Premier said that it up to parties to decide among themselves on whether to undertake difficult decisions.
The Prime Minister, however, did not comment on the allocation of cabinet positions following the departure of the Left Alliance.
Meanwhile, five of the components of the government, other than the Left Alliance agreed on budget talks.
The spending limit talk between the parties in the coalition government ended late Tuesday evening and the talks was followed by the presentation of the outcome of the negotiations by the party leaders to their respective parliamentary groups for deliberation.
After the agreement, Prime Minister Jyrki Katainen had said that budget talks held between the coalition parties had been painful to all the parties.
Katainen described the talks that lasted until evening as extremely difficult.
Katainen, also the chief of the Kokoomus (National Coalition Parties), the biggest component of the alliance government said he was hopeful that the package would be accepted but could not say so on behalf of the other parties.
Speaking after a meeting with his own parliamentary group, the Premier also said that he hopes the Left Alliance will continue to be part of the government.
Finance Minister and the party leader of Suomen Sosialidemokraattinen Puolue (Social Democratic Party) Jutta Urpilainen expressed reassurance saying the outcome was good as a whole. Fresh later report later indicated that SDP parliamentary group has accepted the package.
Ville Niinistö,the chairman of Vhreä Liito (Green League) had earlier expressed optimism saying that everything has been agreed on.
Carl Haglund the party leader of Suomen ruotsalainen kansanpuolue (Swedish People's Party of Finland) also confirmed that they had accepted the package.
Suomen Kristillisdemokraatit (Christian Democrats of Finland) parliamentary group also confirmed they agreed on the outcome of the budget talks.
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