Overview
Under the provisions of the new Constitution of Finland (enacted in 2000), the President nominates a Prime Minister after the parties in the Eduskunta/Riksdag (Parliament) have negotiated the distribution of seats in the new Council of State and the government's programme. Parliament must ratify the nominated Prime Minister with an absolute majority in a vote without other candidates. If the nominee doesn't receive sufficient support, then a new round of negotiations and a second nomination by the President follows. If the second nominee also fails to gain an absolute majority, then a third vote occurs, in which any member of Parliament can nominate a candidate; in this round a plurality is sufficient for election. The President's formal appointment follows Parliament's election.
The above procedure was first used to elect Anneli Jäätteenmäki to the Prime Ministership in 2003. Previously it was assumed that the President would nominate the candidate who in a third round of voting would have gained a relative majority, usually the leader of the largest party. Before the new Constitution came into force, full formal powers to appoint the Prime Minister and the rest of the Council of State had been the privilege of the President, who was free to diverge from parliamentary principles, although ministers appointed had to have the confidence of the Parliament.
The Prime Minister nominates the remaining members of the Council of State, who are then, with the consent of Parliament, appointed by the President.
Read more about this topic: Prime Minister Of Finland