It formed a coalition government with four other parties, but excluded the Centre Party, which had led the previous administration. Finland is virtually self-sufficient in basic foodstuffs such as dairy products, grains and root crops. The country depends heavily on energy imports, producing only 30 per cent of its total consumption. Finland's recent economic history has been turbulent. It has run high budget deficits and its economy suffered severe contraction due to the combined effects of world recession and the collapse of its former markets in the Soviet Union.
Recovery is now underway.
The economy is growing once more, although unemployment is high at 18 per cent. The new administration has declared its firm intention to reduce public spending and, in consequence, subsidies to farmers have been reduced.