Centre party takes most seats in Finland poll

Finland backed a former telecoms entrepreneur as prime minister and handed second place to a populist anti-EU party in a move likely to confirm the Nordic country's status as the most hardline country over a further Greek bailout.

Juha Sipila, the leader of the Centre party and a millionaire who has built his own house and gas-powered car, is set to replace Alex Stubb as Finland's prime minister.

The populist, anti-EU True Finns are set to come in second place, narrowly ahead of Mr Stubb's National Coalition party.

Mr Sipila said he would start coalition discussions on Monday with the three other big parties - including the Social Democrats, who came fourth - but many political experts forecast a centre-right government consisting of Centre, True Finns and National Coalition.

Timo Soini, leader of the True Finns, was jubilant late on Sunday night, saying: "We are here to stay."

With 99 per cent of the vote counted, Centre was due to get 49 seats in the 200-seat parliament, with the True Finns gaining 38, National Coalition 37, and the Social Democrats 34.

The results mean a long period of horse-trading is likely in an attempt to form a coalition that will probably need three of the four biggest parties to take part. The outcome will be closely watched across the EU as Finland has been the most hardline eurozone country over Greece, which faces crucial talks over a possible third bailout in coming weeks.

The True Finns refused to join a coalition in 2011 in opposition to Greece's second bailout, but they have been less strident in their demands in this campaign as Mr Soini positioned them for power. Mr Soini, who has been head of the Finnish parliament's foreign affairs committee, is seen as a possible foreign minister, while some have touted Mr Stubb as finance minister.

The current government is widely seen in Finland as having been a disappointment with the economy contracting for three consecutive years and several reforms being scrapped or delayed amid bickering, particularly between National Coalition and the Social Democrats.

The campaign was dominated by the economy and security. Mr Soini has sought to position his party in the mainstream on both issues, although its anti-immigration views stand out.

Mr Sipila told the Financial Times just before the vote that he wanted to run the country like a business: first by replacing the management, then by shrinking the cabinet to make it more like an executive board, and by making the parties that sign up to the coalition agree to between five and seven pledges.

Restoring Finland's competitiveness through labour market and healthcare reforms is likely to be an early priority for Mr Sipila, who also wants to cut public spending in an attempt to curb rising government debt, which is forecast to have exceeded the EU target of 60 per cent of GDP.

The four leaders of the main parties have also said they would not rule out considering joining Nato as the previous government did. But only Mr Stubb and his party are in favour of Finland joining the military alliance, although polls show rising support and growing concern over neighbouring Russia's behaviour.

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