The government is preparing a 'red button'. This is a new method of state intervention

Redakcja

11.01.2026 10:11

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The government is preparing a 'red button'. This is a new method of state intervention

All because of rising debt. stock.adobe.com/licencja standardowa

The government is considering introducing a new support mechanism for municipalities in chronic financial crisis. The aim is to prevent a repeat of the situation known from Moskenes (Nordland).

Minister of Local Government Bjørnar Skjæran has announced work on a new solution for municipalities with persistent financial problems. This concerns the so-called 'red button', which would be activated in situations where the current supervisory system is ineffective.

Data shows a deteriorating financial condition of local governments. More than half of Norway's municipalities ended 2024 with a deficit.

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More and more municipalities in crisis

According to the municipal sector organization KS, the financial situation of municipalities is the worst it has been in 40 years. The problems stem from high debt, weak reserve funds, and negative operating results. Many local governments are cutting spending on social, health, and care services. Residents are feeling the effects.

The minister warns that more municipalities may end up on the Robek list. Currently, there are 27 local governments on it. KS forecasts that this number could rise to around 100 by 2027. Robek includes municipalities requiring strict state financial supervision.

'Red button' and the example of Moskenes

Moskenes has remained on the Robek list for almost 13 years. The situation was so serious that the state agreed to write off NOK 160 million in debt in exchange for a merger with a neighboring municipality. The municipality of Hareid was also on the list for a similar length of time and returned to it again in 2024.

The new mechanism would be activated in cases where standard tools fail. The minister has announced an analysis of the current system and the competencies of the state administration. The goal is to provide earlier and stronger support for municipalities with long-term problems. The solution aims to prevent further cases like Moskenes.

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At the same time, the government is encouraging municipalities to merge voluntarily and to cooperate more broadly with each other. According to the minister, the smallest municipalities more often have difficulties fulfilling statutory tasks. Demographic changes, including an aging population, are expected to further increase the importance of regional cooperation in the coming years.