Finland Times

The imminent departure of Finnish Prime Minister Jyrki Katainen from government is the latest blow to Finland's former six-party coalition government. The premier's decision to step down comes in the wake of the administration's introduction of austerity measures - that effectively reduced the coalition partners from six to five.

Katainen announced his decision on Saturday night at the launch of campaigning for European Parliament elections by the National Coalition Party, which he has led for 10 years.

At the time, Katainen said he would not stand for re-election as party chair during upcoming party leadership elections, effectively relinquishing his post as prime minister in June. He also indicated that he would be interested in becoming Finland's next EU commissioner following European Parliament elections in May.

Katainen's decision to exit the government at this stage of its bumpy ride follows closely on the heels of the departure of one of the administration's junior government partners, the Left Alliance. The Left and its two government ministers parted ways with the ruling coalition over an austerity budget - featuring 3 billion euros (4.1 billion U.S. dollars) in tax hikes and spending cuts.

After a historic triumph in the Finnish elections, the National Coalition Party secured the position as the biggest party in the parliament in April 2011. Katainen then cobbled together his six-party coalition after weeks of haggling with candidate parties. Once formed, one of the coalition's first assignments was to negotiate the minefield of highly unpopular bailouts for financially-crippled Eurozone states. 

Citizens of this tiny country were outraged at having to turn out their pockets for what they saw as profligacy on the part of their neighbors to the south. As such, Finland's contribution of 1.6 billion euros to the Eurozone bailout fund - even in exchange for loan guarantees - was loathed by many and strongly condemned by the anti-euro opposition Finns Party.

The Katainen government also took a beating from the damaging impact of the global economic downturn, which slowed exports and put a damper on economic activity. Economic growth or GDP tumbled from 2.8 percent in 2011 to negative performance in 2012 (-1.0) and 2013 (-1.4), according to Finland's Finance Ministry.

To add to the witches' brew, general governmental gross debt climbed from around 49 percent of GDP in 2011 to nearly 57 percent in 2013 and is projected at 59.8 percent this year - a hair's breadth away from the 60 percent limit prescribed by the EU.

The coalition responded to the debt trap by introducing 5 billion euros in austerity measures that targeted government and municipal spending, rolling back services and terminating workers. Another 3 billion in cuts was announced last week, precipitating the departure of the Left Alliance.

The Katainen cabinet has struggled politically at home too. The records of the Finnish Parliament show no fewer than 16 interpellations filed against the government by the opposition Finns and Centre parties. The latest challenges the government's deep cuts to child allowance payments, considered by many to be an untouchable benefit in a welfare state.

Recent polls by the national broadcaster Yle and the leading newspaper Helsingin Sanomat both show the opposition Finns and Centre parties gaining steady ground in terms of voter support.

The voter surveys peg the opposition Centre leading the field ahead of Katainen's National Coalition, with the Finns Party and the Social Democrats rounding out the top four. That sets up an intriguing dynamic ahead of general elections due in April 2015 - and creating an opening for a fresh face to lead the National Coalition into the election fray next year.