Finland's former Prime Minister, Alexander Stubb, will hold the post of finance minister in Juha Sipilä's next government, with responsibility for implementing a programme of swingeing cuts to the national budget.
In a press conference announcing the outcome of weeks of negotiations between the Centre, Finns and National Coalition parties, incoming Prime Minister Juha Sipilä unveiled a plan on Wednesday to make 6 billion euros of savings by 2021.
Sipilä also named his new foreign minister as Timo Soini, leader of the eurosceptic Finns party, which gained the second largest share of the vote in April's election.
The appointment came as a surprise to many, who had predicted Soini would take the post of finance minister, which is customary in Finland for the leader of the second largest party in government.
Addressing the press conference, Soini underlined Finland's "political choice" to be part of the European Union, but said the organisation must be reformed. He said that Finland will remain a critical friend to the EU.
Soini also said the government will prepare a report in which they will assess the benefits of Nato membership for Finland. This marks a clear change of direction to the previous government, which agreed at its outset in 2011 not to embark on a process of joining the military alliance.
Meanwhile Alexander Stubb insisted that the government's 10 billion euro savings programme will "ensure the credibility of Finland’s public finances." He told reporters: "Some of the measures are painful, but they’re necessary."
Stubb said that direct spending cuts are frontloaded to save 4 billion euros by 2019, and said that by 2021 the public finances will be strengthened by 6 billion euros.
He also announced an investment of 1.6bn euros to support growth and infrastructure, which he said will be financed by "utilising state assets."
Juha Sipilä is due to announce the remaining ministerial appointments by the end of the week.
