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Significance

Finland looks set to be the next euro-area country to see the ousting of a government made unpopular by austerity and low growth, in favour of an opposition force. However, the Finns Party -- the populist Euro-sceptic opposition -- have lost support in recent years, and may enter government only as a third partner.

Impacts

In the medium term, euro-area recovery could revive Finnish exports and growth.

In the short term, more unpopular austerity measures are in prospect, potentially complicating the new government's life from early on.

A government including the Finns Party is likely to take a hard line against further euro-area support for the bloc's troubled economies.

Without the National Coalition Party, government enthusiasm for NATO membership is likely to fall.

The new government is likely to tone down its predecessor's tough language against Russia.

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