Norway Daily No. 197/99

The Royal Ministry of Foreign Affairs,
Oslo Press Division

Norway Daily No. 197/99

DATE: 13 October 1999

BONDEVIK DEMANDS EU MEMBERSHIP TRUCE

(Dagsavisen)

Now that the Government is committed to budget negotiations with Labour, Prime Minister Kjell Magne Bondevik is demanding an EU guarantee from Thorbjørn Jagland. The PM asks Labour to put aside the EU membership issue until 2005. "Labour should let this matter rest. It would improve the climate between Labour and the coalition parties," says Mr. Bondevik. He also cautions against any visions of a government coalition between Labour and the political centre.

DEBATE OFF TO A HARMONIOUS START

(Aftenposten)

On the first day of the debate on the Speech from the Throne, Thorbjørn Jagland emphasized that Labour seeks a new role - that of a partner with the Government in a collaboration on economic policy. "We must get onto a new track," said Mr. Jagland, who emerged as the Storting's foremost advocate of cooperation. The general tone of the speeches in yesterday's debate was conciliatory.

CHRISTIAN DEMOCRATS SHUT OUT CONSERVATIVES

(Dagsavisen)

Christian Democratic Party chairman Valgerd Svarstad Haugland has slammed the door to the government coalition in the face of Conservative Party chairman Jan Petersen. She does not even want to include the Conservatives in the coalition after the 2001 general election. She says a budget agreement with Labour will "definitely strengthen the Government".

LABOUR BUDGET NOK 2 BILLION SHORT

(Dagens Næringsliv)

Higher taxes for the rich cannot offset Labour's budget demands. Even with the additional NOK 2 billion Labour would like to take from the rich, NOK 2 billion is still lacking to pay for welfare expansions and 'fair redistribution'. "Reductions in expenditures will be most difficult", says Minister of Finance Gudmund Restad (Centre). Budget negotiations between Labour and the parties of the government coalition will commence tomorrow, and they have 14 days to reach agreement.

NHO ADVOCATES HIGHER TAXES FOR PENSIONERS

(Aftenposten)

"There is something wrong with the system when retirement automatically means lower taxes. Persons on disability, early retirement and standard retirement pensions have a much lower social security tax rate. I feel the rate should be the same whether one is in active employment, disabled or retired," says director Olav Magnussen of the Confederation of Norwegian Business and Industry (NHO). The Norwegian Association of Retired Persons calls the proposal "a provocation".

KOSMO SOWS DOUBTS ABOUT OPSETH'S INFORMATION

(Dagsavisen)

"ÆFormerÅ Minister of Transport and Communications Kjell Opseth had informed the Storting of the existence of a report on weather patterns at Gardermoen, but one would have had to be extremely perceptive to conclude from his statement that it contained information of any significance," says Jørgen Kosmo (Labour), chairman of the Storting's Committee on Scrutiny and Constitutional Affairs.

GARDERMOEN WEATHER CAUSES CONCERN

(AFtenposten)

Extreme icing and freezing rain have the Aircraft Accident Investigation Board concerned about conditions for air traffic at the Gardermoen International Airport. The board now calls for better ice warnings. 14 airplanes sustained serious engine damage due to extreme icing conditions at Gardermoen on 14 December.

EU APPROVAL EXPECTED TODAY

(Dagsavisen)

The two Nordic telecom companies Telenor and Telia have met every one of the EU Commission's major demands for the approval of their merger. Telenor/Telia president Tormod Hermansen has called the investigation conducted by the EU's competition authority inquisitorial, but now he can relax. The EU will probably approve the merger.

WORTH NOTING

• Minister of Foreign Affairs Knut Vollebæk has invited His Majesty King Harald to head Norway's delegation to the UN General Assembly next year. It is this body which will decide on giving Norway given one of the prestigious seats in the UN Security Council. (Dagbladet)
• Thorbjørn Jagland dreams of a big political wedding with Kjell Magne Bondevik, but the PM finds a budget flirt this autumn more than adequate. (Verdens Gang)
• Tormod Hermansen could receive a salary as high as SEK 6.75 million per year as group president of Telia/Telenor. This is a substantial improvement on the NOK 1.7 million he earned last year as president of Telenor, but compared with chief executives of other listed corporations in Sweden, Mr. Hermansen is far down on the income scale. (Aftenposten)
• Morten Lund (Centre), chairman of the Storting's Committee on Business and Industry, is dissatisfied with the enormous tax loopholes which enable Kjell Inge Røkke and other mega-millionaires to avoid paying taxes in Norway. Today he will submit legislation to the Storting aiming to remedy the problem. (Dagbladet)
• Phillips Petroleum Company Norway, one of the largest oil companies in the Norwegian sector, is considering moving its main office from Norway to England. (Klassekampen)

TODAY'S COMMENT

With Labour and the three parties of the Government coalition already having agreed to start budget negotiations, the first day's parliamentary debate on the Speech From the Throne naturally enough reflected this state of amity. Opportunities for political offensives were passed by in favour of the spirit of negotiation proclaimed by the heads of the Labour Party and the coalition parties. The budget negotiations will sideline Progress and the Conservatives for a while, and the success or failure of the negotiations will decide how long they will stay there. Before the process is over, Labour will have to decide whether it can take a back seat to Mr. Bondevik's mini-coalition, which will be no easy decision for a party of Labour's format. (Aftenposten)