PM hopes Britain to overcome uncertainty soon

Prime Minister Juha Sipilä said on Friday the talks about British exit from the European Union (EU) could become more complex if the formation of a new cabinet in Britain takes a long time.

Talking to national broadcaster Yle on Friday, Sipilä said he nevertheless hopes that the talks could begin shortly.

"The continuation of this kind of uncertain situation does not match anyone's interest," Sipilä said.

The Prime Minister did not believe Brexit would be cancelled due to the election result as both the conservatives and labour have committed themselves to respecting the results of the referendum last summer.

Results from British election on Thursday showed that the Concervatives won 316 seats but failed to hit the 326-seat threshold for majority. Labour won 261 seats. As no party can form a majority government, the situation brings more uncertainties to British politics.

Heidi Schauman, chief economist of the Aktia Bank, told Finnish language daily Aamulehti that the main repercussion of the British election results is an increasing uncertainty on a longer term.

She said the talks about Brexit were supposed to start in ten days, but the surprising election results may hamper decision making.

Aki Kangasharju, chief economist of Nordea Bank, told business service Taloussanomat that the British result will not have much of an impact on the European economy, "but uncertainty increases within Britain". Kangasharju said that particularly investments into Britain could be disturbed.