Norway coalition government collapses over EU energy policy

Oslo — Norway’s Eurosceptic Centre Party quit the government on Thursday in a dispute over the adoption of EU energy policies, leaving the centre-left Labour Party to rule alone eight months before an election.

The announcement by finance minister Trygve Slagsvold Vedum deprives Prime Minister Jonas Gahr Stoere of his only coalition partner and eight of the 20 members of his cabinet, including the defence, finance and justice ministers.

Labour, which has held power since 2021, will now govern alone until the next election is held in September but it lacks a majority in parliament and trails right-wing parties in opinion polls.

Norway, a member of Nato, is not part of the EU but Labour wants to maintain good relations with the bloc, partly because of the threat of a trade war between Europe and the US.

“It would create doubt about the credibility of the agreement [with the EU] at a time when it is more important ever, in my opinion,” Stoere told a press conference.

Labour wants to adopt EU directives on renewable energy consumption, energy performance in buildings and increased overall energy efficiency, government ministers have said.

The Centre Party opposes all three directives, which it says will erode Norwegian autonomy, and has long said the power- and gas-exporting nation should instead seek to reclaim authority over regulation from the EU.

“The conclusion for us is that the Centre Party does not want to be part of this development,” Vedum said. “We want to take back more national control.”

Stoere is seeking a new term as Labour leader before September’s election despite questions over whether he is the best person to lead the party.

Trump tariffs

Norwegians narrowly rejected EU membership in referendums held in 1972 and 1994 and the question of joining the bloc remains among the Nordic nation’s most divisive political issues.

Norway is part of the European Economic Area (EEA), allowing the free flow of people, goods, services and capital between the EU and non-EU states Norway, Iceland and Liechtenstein.

Norway is not part of the EU’s customs union, the common agriculture and fisheries policies, the monetary union, trade policy, foreign and security policy and justice and home affairs.

Still, to maintain its current relationship with the EU and ensure a level playing field for its industries, Norway has adopted thousands of EU rules and regulations over decades while having little or no say over their formulation.

Two-thirds of Norway’s exports go to the EU, and Labour has said US President Donald Trump’s threat of tariffs and a risk of trans-Atlantic trade war make it essential to nurture the EEA relationship and implement directives from Brussels.

Reuters