Government’s budget passed by the Storting (NTB)

After long hours of debate and countless speeches, the Storting’s President rang the voting bell just before midnight. Half an hour later the country had a budget for next year – this time without Prime Minister Kjell Magne Bondevik having to demand a vote of confidence to get it approved. In line with the budget settlement, the Progress Party backed the Government’s proposal after the party’s own budget had been voted down. During the debate it was clear that the Progress Party was not going to support the Government with any degree of enthusiasm. The PM apologized for the "excessive turbulence" surrounding the budget process. This phrase provoked Mr Hagen mightily, and he promised to remember it the next time around. He advised Mr Bondevik to approach either the Progress Party or the Labour Party, but not both.

Halvorsen accuses Bondevik of being "stuck to the Progress Party" (Dagsavisen)

Prime Minister Kjell Magne Bondevik has warned opponents not to paint the Government’s policies black. But according to Socialist Left Party leader Kristin Halvorsen, Mr Bondevik does not appear to be acting like a "fountain of light" in his defence of the Christian Democratic Party, because he is obviously at ease in the company of the Progress Party. Ms Halvorsen claimed that it was "uncomfortable for the Christian Democrats to be stuck so firmly" to the Conservatives and the Progress Party. Mr Bondevik responded by saying: "I have no qualms about defending the budget’s profile. Once we gain the attention of our audience, it will be well received by many". Mr Bondevik made it plain that he disliked Ms Halvorsen’s self-appointed role as political commentator.

Left-wing bubble burst (Dagsavisen)

Unmistakable cracks in the burgeoning centre-left alliance appeared during yesterday’s finance debate in the Storting. Both monetary policy and EU membership are clearly divisive issues. Socialist Left Party leader Kristin Halvorsen prepared the way for a confrontation by claiming that Labour leader Jens Stoltenberg "was in love with the EU", before asking him if he saw anything negative about the EU. Mr Stoltenberg replied: "I see characteristics and qualities in the EU which I do not particularly appreciate, but the negative elements already have an impact on us through the EEA Agreement".

Disagree on monetary policy (Dagens Næringsliv)

Monetary policy divides the Labour Party, Socialist Left Party and Centre Party, who are trying to lay the foundations for a formalized centre-left alliance after the next general election. Labour supports the ruling coalition parties in their defence of today’s guidelines for the Norwegian Central Bank, while the Socialist Left Party and the Centre Party feel that Central Bank Governor Svein Gjedrem is too one-sidedly preoccupied with inflation. Finance Minister Per-Kristian Foss has praised the Labour Party for its staunch defence of current monetary policy.

Norwegian doctors carry out mercy killings (Aftenposten)

According to a recent survey, one in 20 anaesthetists admits having actively assisted a patient to die. A quarter of anaesthetists report that they have ceased giving essential medical treatment due to a lack of resources. "It would be naïve to believe that euthanasia does not happen in Norwegian hospitals. This is the first time we have shown how many doctors have deliberately done such a thing," said professor Reidun Førde. Under Norwegian law there are no circumstances in which euthanasia is permitted," said Health Minister Dagfinn Høybråten.

Hospitals forced to cut NOK 6 billion (Dagbladet)

Norwegian hospitals will end the year with a massive combined deficit of NOK 3.2 billion. And the Government has refused to grant a penny in emergency assistance. Hospital budgets will have to be cut by NOK 6 billion. Several hospitals are already reporting plans for staff redundancies and cuts in patient treatment. On Friday the Government will announce its final readjustment of this year’s national budget. The Progress Party is trying to mobilize a parliamentary majority in favour of granting extra funds to cover the hospital deficit.

Spending in Sweden just keeps on growing (Dagbladet)

The Federation of Norwegian Commercial and Service Enterprises (HSH) thinks that the amount of money Norwegian shoppers spend in Strømstad, just over the border in Sweden, has increased by around 15 per cent this year compared to last. "It is extremely worrying that cross-border retail spending is growing in the way it is. This year we expect such spending in Sweden to total NOK 8.6 billion, and on top of that comes retail spending in other countries, such as Denmark. Meat accounts for a huge proportion of this trade, because the price differences are so large – between 50 and 80 per cent," said Jarle Hammerstad, head of public affairs at the HSH.

Wild west in the North Sea (Dagsavisen)

30-40 hour shifts are commonplace on North Sea drilling rigs. An internal report shows widespread disregard in the industry for the regulations governing working hours. "Most of the violations are simple to eradicate, and we are working to introduce procedures to avoid breaking the rules," said Kristoffer Hetland, corporate communications manager at Statoil. An internal inquiry team at Statoil has been investigating whether there is any truth to claims that 30-40 hour shifts are commonplace.

EU reduces demand for financial contributions from Norway (Nationen)

The EU has decided to reduce its demand for financial contributions from Norway in connection with the renegotiation of the EEA Agreement to also include the EU’s new member countries. But the EU’s internal discussions were not completed yesterday. Nationen has learned that Portugal proved obstinate with regard to the other important question in the forthcoming EEA negotiations – fish.

Worth Noting

• "It is extremely serious that human remains were probably hosed out to sea," said Jon Hovring, the brother of the Widerøe pilot whose plane crashed into the sea off Mehamn 20 years ago. More and more people have now come forward with their version of what happened before, during and after the accident. The body of Captain Per Hovring has never been found.
  (Aftenposten)
• Finance Minister Per-Kristian Foss is refusing to abide by the Storting’s decision to make pre-school day-care places paid for by employers tax free. He is demanding that the Storting first set aside NOK 500 million to pay for the loss of tax revenues.
  (Dagens Næringsliv)
• Norway is to close its embassy in Baghdad with effect from 1 January. The Foreign Ministry claims that this move has nothing to do with the risk of war. "No matter what the reason is, it is an exceptionally bad idea," said Centre Party MP Åslaug Haga.
  (Klassekampen)
• The Palace knew that the equestrian centre at the royal farm at Bygdøy was in financial difficulties early in the summer, but did nothing about it. No one will want to grant loans to the royal farm after the bankruptcy scandal, claims investor Kristin G. Andresen.
  (Aftenposten)
• King Harald risks having to meet angry celebrity investors in court. "In my opinion, when the King is involved in a business venture of this kind, it is not automatically given that royal privilege means he is exempted from being sued," said law professor Carl August Fleischer.
  (Aftenposten)
• Tormod Hermansen, chairman of IT Fornebu, has called for the Government to set up a broad-based, inter-departmental group to assist the project. Trade and Industry Minister Ansgar Gabrielsen is hesitant to do so.
  (Dagens Næringsliv)
• If you are single the chances of you belonging to Norway’s power elite are small. 90 per cent of those in positions of power are either married or living with a partner, according to a recent report.
  (Verdens Gang)
• Torgeir Stensrud, who has been charged with offences in connection the Finance Credit scandal, ran the Norwegian Association of Reserve Officers to the brink of bankruptcy during his tenure as president of the organization.
  (Aftenposten)
• Former Foreign Minister Bjørn Tore Godal will shortly be appointed as Norway’s new ambassador in Berlin. However, the Foreign Ministry unions are unhappy that key positions should be awarded to ‘outsiders’.
  (Aftenposten)

Today’s comment from Aftenposten

As a whole, next year’s national budget, which was approved by the Storting last night, is no bad budget for the Norwegian people. It is tight enough to possibly pave the way for a slight drop in interest rates. And despite the fact that the majority of our local politicians – regardless of political persuasion – will be dissatisfied, it is a wild exaggeration to claim that the budget poses a threat to public welfare. Respect for the politicians has taken a beating during this year’s budget process. There has been an unusual amount of sound and fury, but the budget which the Storting finally approved was only one or two per cent different to the Government’s highly criticized first proposal. There has been a conspicuous lack of correlation between the economic reality and the political posturing. On principle the Labour Party prefers to enter into overall budget agreements. This is one of the reasons we feel it would be better for the country if the Government had done a deal with the Labour Party. But the political will to do so was not present – not even in the Labour Party. If Labour’s lack of will was due to a desire to build up a long-term government alternative in collaboration with the Socialist Left Party and the Centre Party, yesterday’s finance debate was a poor start. Fundamental disagreement on monetary policy and even deeper divisions over Norway’s relations with the EU than those separating the ruling coalition parties show that the three centre-left parties have a long way to go before they are ready to form a government together.