Norwegian Finance Minister Blames EU for Government Collapse

Norway’s coalition government has fallen apart after the Centre Party, known for its eurosceptic stance, withdrew in protest against European energy policies. This development leaves Prime Minister Jonas Gahr Støre leading a minority Labour government just months ahead of the scheduled elections on September 8.

Although Norway is not a member of the European Union, it adheres to EU energy regulations as part of the European Economic Area (EEA). Finance Minister and Centre Party leader Trygve Slagsvold Vedum cited surging electricity prices as the main reason for his party’s exit, attributing the increase to EU influence and market shifts.

“Norway must regain national control over electricity prices,” Vedum stated. He blamed two undersea power cables linking Norway to Germany and the UK for exacerbating price hikes, criticizing previous conservative administrations for approving their construction.

“The price transmission through these cables causes high and unstable prices, and the EU prevents us from implementing effective measures to regulate electricity exports from Norway,” he added.

Vedum also accused the Labour leadership of aggravating the issue by supporting the EU’s fourth energy market package, which promotes renewable energy and efficiency improvements across Europe. Additionally, he pointed out that several EU countries have become overly dependent on Norwegian hydropower, leading to further market instability.

Following the Centre Party’s departure, Støre acknowledged the government’s collapse in a press conference. He now faces the challenge of governing with a minority administration in the lead-up to elections. The political upheaval highlights increasing tensions over Norway’s energy policy and its relationship with the EU amid soaring electricity prices and supply concerns.