NEW LEAP FORWARD FOR CARL I HAGEN (Verdens Gang)

According to Norsk Gallup’s October opinion poll, the Progress Party has moved forward two per cent to 30 per cent, while the Labour Party is holding steady. "We are not happy to be at this level (24 percentage points), but we have shown before that we can turn bad opinion polls into good results at the ballot box. And there is a year to go before the next elections," says Prime Minister Jens Stoltenberg. If there were an election today, Labour would win 26 seats in the Storting, 16 fewer than they currently have.

CALLS FOR LABOUR TO CHOOSE SIDES (Dagsavisen)

Agreement on the budget is not enough for the centre. The Centre Party wants to include other issues in the forthcoming budget negotiations and is calling for Labour to choose sides. "The Government cannot negotiate structural questions with one group and numbers with another. For us it is totally unacceptable to be part of that kind of back-and-forth negotiations," says Centre Party Chairman Odd Roger Enoksen. Prime Minister Jens Stoltenberg admitted during the debate on the Speech from the Throne that the Government has "corresponding views" with the Conservatives and Progress Party on some issues, but pointed out that "on the whole" the centre alliance and Labour had cooperated on budget matters since 1986.

VERY VAGUE (Aftenposten)

Jørgen Kosmo, Minister for Labour and Government Administration, presented plans for the "largest ever reorganisation of the public sector". However, the ten-point plan did not contain much that was new. Mr Kosmo aims to reduce the amount of form-filling for private sector companies and increase local government autonomy. He said that in two years, noticeable changes will have been made.

CHEAP TO FIX INTEREST RATES (Dagbladet)

For the first time since the summer of 1999 it is now as "cheap" to choose a fixed-interest loan as a loan with a floating interest rate. However, you should not necessarily move to fix the interest rate on your loan. Developments in interest rates over the next five years are what will determine how "cheap" a fixed-interest solution really is.

INTEREST RATE RESPONSE TO BUDGET IN A COUPLE OF WEEKS (Dagens Næringsliv)

Deputy Governor of the Norwegian Central Bank Jarle Bergo will not comment on whether the Government’s proposed budget is tight enough to prevent a new rise in interest rates. "Wait for our budget memo," is Bergo’s reply. The Central Bank is due to send its annual memo, in which it will detail its views on the budget, to the Ministry of Finance in a couple of weeks.

BAKKE WANTS TIGHTER REIN ON CENTRAL BANK (Dagsavisen)

According to former Labour minister Hallvard Bakke, the Norwegian Central Bank is living in an ivory tower, oblivious of the world around it. He would like to see the Central Bank shorn of the power it exercises over "ordinary people’s living standards" through its interest rate policy. Mr Bakke’s criticism was prompted by the Central Bank’s announcement of a rise in interest rates just as the trade unions were voting on the results of this year’s round of wage negotiations. "If the Central Bank had their feet in the real world, they would have realised that the interest rate rise itself would provoke demands for higher wages," said Mr Bakke at a Confederation of Vocational Unions conference yesterday.

END OF ENVIRONMENT FUND (Nationen)

Three years ago the previous Labour government created the Norwegian Environment Fund. NOK 25 million was to be spent to show that the then government was serious about the environment, and ensure reduced emissions of CO2. Now the fund is empty. The Norwegian Industrial and Development Fund (SND) has lent out all the money to what it calls small, but extremely good environmental projects. The current Labour Government does not intend to put any more cash into the fund, and no projects will receive loans.

FLOOD MEASURES NOT IMPLEMENTED (Aftenposten)

According to some experts, a major new flood in the South East could have disastrous consequences. The experts are shocked by the fact that several of the flood-prevention measures proposed after the last major flood in 1995, have not yet been implemented. The Norwegian Water Resources and Energy Administration (NVE) says that there is a danger of flooding in a number of small, unregulated watercourses in Akershus, Buskerud, Oppland and Hedmark.

WORTH NOTING

1. Norwegian IT investors are quaking in their shoes after New York’s Nasdaq index fell yesterday to the lowest level this year. Norwegian shares followed suit, and the Oslo Stock Exchange’s IT index closed 6.5 per cent down. The collapse meant NOK 5.8 million in share value has simply evaporated. (Aftenposten)
2. Forget any hope of lower interest rates. According to the Norwegian Savings Bank Association, the Governor of the Norwegian Central Bank would like to keep interest rates at today’s level for at least another two years. The Savings Bank Association’s views are supported by the Government. (Dagsavisen)
3. The head of the Institute for Marine Research is proposing that sea fishermen should also have to buy a fishing license. He feels that there should be a fee for fishing in the sea in the same way as there are fees for the use of other resources. (Aftenposten)
4. The Conservative Party says that the Government’s budget will lead to an overheating of the Norwegian economy. The party has called for a detailed response from the Ministry of Finance on the extent to which the budget is really as neutral as the Labour Government has indicated to the Storting. (Dagens Næringsliv)
5. Train commuters can breathe a sigh of relief. Rush-hour tickets will not be more expensive than at other times of the day. At least not for the next few years. (Dagsavisen)

TODAY’S COMMENT FROM DAGBLADET

Today we would like to congratulate the Government and the Foreign Office on the success of the campaign to get Norway voted into the UN Security Council. Each year Norway makes a substantial financial contribution to the UN’s activities, and may be able to play an important role, particularly with regard to preventing the outbreak of conflict and improving the coordination of aid and humanitarian assistance to the poorest parts of the world. We also believe that a seat on the Security Council will raise Norwegian interest in the UN and give greater depth to the debate on foreign policy issues in general. The Norwegian public stands to gain if the reasons behind the policies, not just the policies themselves, are made known beyond a narrow circle of insiders. We would also advise Foreign Minister Thorbjørn Jagland to meet criticism and debate with a light heart and good humour. Even quiet diplomacy must be rooted in a public exchange of views, no matter whether it is with ex-prime ministers or ultra-orthodox Christian Democrat politicians.

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