Finland PM resigns but coalition expected to survive

Finnish Prime Minister Antti Rinne resigned on Tuesday after losing the support of the coalition partner Centre Party, though the governing alliance is expected to stay in power to avoid a snap election.

A Social Democrat who has headed the centre-left five-party government since June, Rinne handed his resignation to President Sauli Niinisto, who asked the government to stay on in a caretaker capacity until a new government has been appointed, the presidency said.

"All of the governing parties have confidence in me, except the Centre Party. When I was told why they no longer have confidence in me, I made the decision to resign," Rinne said.

The Centre Party was angered after the prime minister was accused of lying by the head of Finland Post - the culmination of a long-running dispute over reforms to the pay and conditions for some postal workers.

"All of the government parties are committed to the... government programme. If (me) being prime minister jeopardises the government programme, it is better that I steer clear of it," Rinne told reporters.