Finland’s government is expected to include far right representation after the new prime minister, Centre party leader Juha Sipilä, confirmed that he was opening negotiations to bring the populist Finns party (PS) into coalition for the first time. The PS’s charismatic leader, Timo Soini, is poised to become a minister, probably with the finance or foreign affairs portfolio, after the party finished second in the general election on 19 April.

Sipilä said it was the “best option” to meet the challenges facing the country, notably the economy. He said he wanted a strong coalition capable “of making reforms and implementing those decisions”. The third partner in the coalition will be the conservative National Coalition party, led by outgoing premier Alexander Stubb. The coalition will have a comfortable majority, with 123 seats out of 200.

Along with Belgium and Greece, Finland is the third EU country with populist Eurosceptics in government

Negotiations have begun on a detailed agenda for government. The Social Democrats, part of the previous government, will be in opposition after their crushing election defeat.

Throughout the campaign, Soini, 52, assured voters he was ready to govern. He is a well-known Eurosceptic and a critic of the financial rescue package for Greece.

Soini avoided any reference to the euro on the campaign trail, though his party manifesto clearly states that Finland should renegotiate the terms of European Union membership and recover powers from Brussels. Soini also toned down his criticism of immigration, though he made no attempt to condemn the xenophobic comments of some other PS candidates.

There is a consensus view, shared by the three main parties that have governed in the past, that it is preferable to have the populists on board, rather than allow them to gain ground in opposition. Along with Belgium and Greece, Finland is the third EU country with populist Eurosceptics in government.

Although Sipilä may be able to come to terms with Soini, Finland’s stance on Europe will soon become an issue, particularly if he becomes minister of finance or foreign affairs. Stubb, the third leader in the coalition, advocates European integration and would like Finland to join Nato. However, like the other coalition partners, he has misgivings about helping Greece.

The three coalition partners will also need to agree on the severe austerity drive Sipilä is preparing in an effort to sort out the country’s finances, after enduring three years of recession and poor growth in 2015. The premier has announced that he intends to cut public spending by at least €6bn ($6.8bn) during his term of office.

He is also pushing trade unions and employers to agree on labour-market reforms to boost competitiveness. So far they have failed to agree on a common platform. The conservatives are prepared to implement drastic cuts in public spending, but the PS is more cautious. On several occasions the PS has stated that austerity measures should not be too severe.

This article appeared in Guardian Weekly, which incorporates material from Le Monde