Sipila met President Sauli Niinisto in Helsinki, who asked him to stay on as caretaker until the April 14 election.

“The collapse of the government is in a way surprising, but also understandable,” said Pasi Kuoppamaki, chief economist at Danske Bank in Helsinki. “Now the coalition partners can focus on campaigning for the elections without needing to cooperate closely. There will be no major impact on the economy.”

Sipila, a former businessman, has been heading a center-right alliance with the support of Finance Minister Petteri Orpo’s National Coalition and junior partner Blue Reform.

During its tenure, the government has overseen an economic revival and pushed through an unpopular reform aimed at boosting productivity by making employees work more for the same pay.

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.