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Oil, taxes and... free dentist. These disputes could sink the new government
The Labour Party improved its result from four years ago, but fragmentation among the other bloc parties may cause difficulties in building a stable government. Fot. Stine Østby (Flickr.com, CC BY-NC 2.0)
Prime Minister Jonas Gahr Støre faces tough negotiations within the center-left camp. The parties differ on issues such as oil and gas, Oljefondet investments, the energy market, dental care, and the tax system. The stability of the new government depends on whether a compromise can be found.
One of the key points of tension is the issue of further oil and gas exploration. The Labour Party (Arbeiderpartiet) wants to continue exploration and production, justifying this with Norway’s role as an important energy supplier for Europe. The Greens are demanding a plan to phase out the oil industry, while the Socialist Left is calling for a complete halt to new exploration.
The Centre Party points to the need for a long-term, stable approach to the oil sector. It is the only party in the center-left bloc whose stance on the extractive industry is similar to that of the Labour Party.
The Centre Party points to the need for a long-term, stable approach to the oil sector. It is the only party in the center-left bloc whose stance on the extractive industry is similar to that of the Labour Party.
Oljefondet, Israel and electricity as bones of contention
Another major dispute concerns the Norwegian Oil Fund’s (Oljefondet) investments in Israel. The Socialist Left demands that the fund withdraw all investments related to companies supporting activities considered human rights violations. The Labour Party does not plan a complete withdrawal from investments in that country.
Another contentious area is the issue of national control over the energy market. The Centre Party and the Reds are demanding greater sovereignty and limiting the influence of the European market. The Labour Party emphasizes that it wants to maintain energy exports and international cooperation.
Another contentious area is the issue of national control over the energy market. The Centre Party and the Reds are demanding greater sovereignty and limiting the influence of the European market. The Labour Party emphasizes that it wants to maintain energy exports and international cooperation.
In 2021, only the votes of the Centre Party were enough to reach political agreement. When creating the budget, politicians from the Socialist Left also cooperated./illustrative photo, Photo: Labour Party press materials
Welfare and taxes in the spotlight
Another area of dispute is social and health care reforms, especially the demands of the Reds and the Socialist Left for free dental care. The Labour Party is considering expanding public services in this area, but does not agree to raise taxes for this purpose. It is estimated that the cost to the state could range from NOK 4.2 to 12.7 billion per year.
The last of the five most controversial topics is the tax agreement. The Labour Party seeks changes to promote economic development, which would involve all parliamentary groups. The other red-green parties are demanding an increase in state levies, including the wealth tax.
The last of the five most controversial topics is the tax agreement. The Labour Party seeks changes to promote economic development, which would involve all parliamentary groups. The other red-green parties are demanding an increase in state levies, including the wealth tax.
Differences of opinion between Ap, SV, Rødt, Sp, and MDG show that reaching a common position will require negotiations and compromises. Prime Minister Støre faces the task of reconciling the interests of environmental groups and those parties that see Norway’s role as a key energy supplier in Europe. Ultimately, the ability of the parties to reach an agreement will determine the stability of the future government.
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