Norway’s coalition government fell apart on Thursday as the Euroskeptic Center Party rejected EU energy policy regulations championed by Prime Minister Jonas Gahr Store, leading to an electricity price hike warning from party leader and finance minister Trygve Slagsvold Vedum.
The collapse leaves Store at the helm of a minority Labor Party government until September’s scheduled elections. While it can still govern, it has lost its parliamentary majority, potentially hampering legislative progress.
At the heart of the dispute is the EU’s ‘Clean Energy for All Europeans’ package, adopted in 2019 to promote renewables, energy efficiency, reduced CO2 emissions, and robust energy governance within the bloc. Norway, as a non-EU member but EEA participant, typically adopts these rules unless it exercises its right of reservation.
The Center Party argues that embracing these changes would erode Norwegian autonomy in energy policy. Vedum criticized previous Conservative governments for contributing to price hikes by allowing undersea power lines to Germany and the UK. He stated, “When the Labor leadership… chooses to make the problem even bigger by tying Norway closer to the EU… the Center Party chooses to leave the government.”
Norway’s significant oil and gas production and exports highlight the importance of its energy policy independence. The Center Party believes Oslo should reclaim authority in this area rather than aligning with EU regulations.
Store’s Labor Party now faces governing challenges without a majority, potentially impacting Norway’s response to EU energy policies. The next elections in September will determine the nation’s political direction regarding its ties with the bloc and energy sector autonomy.