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Ruling Center Party in Finland in talks to form new coalition

Finland's ruling Center Party, the winner of parliamentary elections by a razor-thin margin, began talks yesterday to form a new coalition, likely with the main opposition Conservatives -- the biggest vote winner.

The left-leaning Social Democrats, currently the centrists' main government partner, were the big losers in Sunday's vote and could end up in opposition for the first time since 1995.

However, any government shift was not expected to yield major changes in the country of 5.3 million, one of Europe's most homogenous societies.

"We did it," Prime Minister Matti Vanhanen said after a full vote count showed his Center Party won 51 seats in the 200-member parliament, one more than the Conservatives.

"In an election it's always easy to win from the opposition, but the most difficult thing is to renew one's victory," he told jubilant supporters.

Conservative leader Jyrki Katainen also celebrated the result, which would give his party 10 new seats for 50 in the new parliament.

"The Conservative Party cannot be sidelined from government talks without considerable violence," he said.

The Social Democrats dropped eight seats to 45, while the third partner in the current coalition, the small Swedish People's Party, gained one seat for a total of nine.

Unofficial government formation talks began early yesterday, and later during the day Vanhanen was expected to meet Katainen, party officials said.

Social Democratic Party Secretary Maarit Feldt-Ranta did not rule out the party's inclusion in any coalition, but said the centrists would decide on government talks.

"The ball is in their court," she said.

"We respect the Center's position as the largest party ... and that means they will start the talks," Feldt-Ranta said.

The Greens, who were hoping to benefit from growing concerns about climate change, gained one seat to 15. The environmentalists could be invited to broaden a new center-right coalition, analysts said.

Parliament will convene next week, and on April 17, lawmakers will choose a prime minister. Two days later, President Tarja Halonen is expected to name the new Cabinet.

Finland, home to the world's largest mobile phone maker, Nokia Corp, has a booming economy and consistently ranks high in international surveys on competitiveness. Its notoriously high unemployment rate has dropped to the EU average under Vanhanen's government -- 7.6 percent in January -- but critics say he has failed to improve health care.

There is broad agreement among the major parties on most policies, including on maintaining Finland's neutrality and its welfare system financed by high taxes.

Pensions and care for the elderly were among the main election issues in a country where the proportion of people aged 65 or older has reached 15 percent, from 7 percent in the 1950s.
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