Finland's outgoing PM: 'hugely disappointed' at cabinet fall

Finland's prime minister Juha Sipila offers government's resignation over failed healthcare reforms

Finland's prime minister Juha Sipila offers government's resignation over failed healthcare reforms

Prime Minister Juha Sipilä has described the collapse of his government over its failed social and health care reform package, "sote", "a major disappointment".

Niinisto who accepted the stepping down letter urged the government to stay on a a transition governance system to facilitate the appointment of another resignation.

Finnish Prime Minister Juha Sipila stepped down just weeks before a general election after failing to push through parliament plans to overhaul health services and social care in the face of an aging population.

Niinisto has asked Sipila and his cabinet to continue on and operate as a transitional government, according to Huvudstadsbladet newspaper.

Friday's decision comes before Finland holds parliamentary elections on April 14 to renew Finland's 200-seat Eduskunta assembly.

"The social welfare and healthcare reform was one of our government's most important objectives", Sipila said at a press conference. But he insisted that Finland "needs a reform", indicating the issue is likely to play a large role in elections and the next government's mandate. "I take my responsibility".

Sipila had previously said he would resign with his government if the reform failed.

This reform could have taken the annual growth of social and health care costs between 2019 and 2029 to 0.9% down from the current 2.4% which made the Opposition to launch an onslaught on the government over the failure.

But the health reform plan has had a rocky road, running several times into constitutional obstacles, and the government has also come under fire over a scandal involving neglect at nursing homes. He heads a coalition made up of his Centre Party, the conservative National Coalition and Blue Reform, another conservative grouping made up of defectors from the nationalist Finns Party.