Tax cut shaves NOK 300 off electricity bill (Dagsavisen)

Unabashed electioneering, that is how the other parties describe the Government’s last-minute NOK 0.01 cut in the electricity tax. For ordinary households the cut means just NOK 300 off their electricity bills next year. "The desperation in the Labour Party has obviously reached the Prime Minister’s office. That the PM now falls into line and proposes a cut in the electricity tax is good news, but I doubt whether the voters believe him," said the Conservatives’ economic policy spokesperson, Per-Kristian Foss, pointing to the fact that the Labour Party voted to increase electricity prices by a total of NOK 0.05 in the 2000 and 2001 national budgets. During the debate on the revised national budget in June this year, the Labour Party voted against a Conservative proposal to cut the electricity tax by NOK 0.025.

PM: No panic in Labour Party (Aftenposten)

Prime Minister Jens Stoltenberg has denied that the recent wave of statements by Labour politicians on the tax situation is a sign that the party is panicking. "There is nothing new in the Labour Party wanting to lower indirect taxes which are unreasonably high. We have done it before, and will do it again. Many families feel electricity bills have become unreasonably high. That is why we are cutting the electricity tax by NOK 0.01 from 1 July, and by even more next year. We have cut the tax on petrol and diesel on three separate occasions and have halved the level of VAT on food. But I would warn against believing that the tax level can be reduced dramatically without it having an impact on the provision of welfare services. Welfare is something we all have to pay our share of," said Mr Stoltenberg.

No overview (Dagbladet)

Each year we pay a total of NOK 195 billion in indirect taxes to the Government, but no one has a clear overview of how these taxes affect the individual. Although VAT is the largest source of revenue, those purchasing cars or homes in particular are obliged to pay a hefty extra sum to the state. Of the NOK 195 billion in total indirect taxes, NOK 126 billion is made up of VAT, NOK 68 billion come from taxes on specific items, and NOK 2.4 billion come from customs duties.

EU membership could torpedo Petersen’s new government (Dagsavisen)

EU membership could torpedo a new non-socialist government after the election. Conservative Party chairman Jan Petersen is refusing to ‘sacrifice’ his freedom of movement on this issue. The Christian Democrats would then have to leave the government or reverse their EU policy. "If EU membership were to become a real possibility, we would have to find a solution with regard to the composition of the government," said Mr Petersen. "We will not be party to any efforts to prepare or make an application for EU membership, no matter who is in government. It says in our political programme that we will stick with the EEA Agreement. It is in our programme and the voters must be able to trust us on this," said Kjell Magne Bondevik.

Bondevik clings to centre alliance alternative (Vårt Land)

Kjell Magne Bondevik is clinging to the centre alliance as a post-election government alternative, and wants Jens Stoltenberg as his main opponent in this year’s election campaign. "It is Mr Stoltenberg who currently heads the Government, and it is Mr Stoltenberg we are challenging," said Mr Bondevik, who believes the three centrist parties will have more success in the election itself than the opinion polls indicated earlier in the summer.

Sudden drop in numbers taking early retirement (Aftenposten)

People over the age of 62 are now choosing to keep working instead of taking early retirement under the AFP scheme. The number of applications for AFP has fallen dramatically in the first half of this year. In the local government sector, 50 per cent fewer applied for early retirement under the AFP scheme, while in the private sector, applications dropped by 35 per cent. The reduction has clearly been prompted by changes in the AFP scheme which came into effect 1 August last year. It no longer pays for this group of pensioners to work extra.

Commission prepares to reject Sampo takeover (Aftenposten)

Bjørn Skogstad Aamo, head of the Banking, Insurance and Securities Commission, believes it is ‘doubtful’ whether the Commission would grant Sampo permission to acquire Storebrand under the legislation invoked by the Finns. According to Mr Skogstad Aamo, it is therefore highly likely that the Commission will evaluate Sampo’s application in light of the basic rule, which states that Sampo must have control of over 90 per cent of Storebrand’s shares before permission can be granted for a takeover. It is possible to receive dispensation from this rule, but Mr Skogstad Aamo has previously stated that such a dispensation would only be granted if Sampo can substantiate the likelihood that it will gain control over at least 90 per cent of Storebrand’s shares within the next few weeks.

EU approves Sampo’s takeover bid (Dagens Næringsliv)

The EU’s competition authorities see no reason to block a merger between Sampo and Storebrand. The EU’s decision makes it more difficult for the Norwegian Ministry of Finance to reject Sampo’s application for approval of its acquisition of Storebrand. The Banking, Insurance and Securities Commission has called Sampo’s attempt to get round Norwegian ownership limitations as ‘doubtful’. Sampo’s attorney believes the Commission will soon change its mind.

Worth Noting

• Electricity prices in Norway have gone from being the cheapest in Europe to being among the most expensive, according to calculations published by the Norwegian School of Management (BI) and reported by NRK, the Norwegian public broadcasting company. (NTB)
• Industry leaders and analysts are concerned that lower domestic electricity prices will be compensated by a new tax on industrial users. (Dagens Næringsliv)
• Telenor has acquired 100 per cent of the shares in Hungary’s second largest mobile phone company, Pannon GSM. The company has been keen to acquire Pannon for a long time, and at three o’clock yesterday morning the deal was finally clinched. Telenor will pay a total of over NOK 8 billion for the shares. (NTB)
• Employee representatives at Storebrand feel Norwegian politicians are giving them the cold shoulder. Neither Kjell Magne Bondevik nor Jens Stoltenberg will talk to them about the Sampo affair. (Aftenposten)
• The tax on carbonated soft drinks has a long history. In the 1920s the sale of wine and sprits in Norway was totally prohibited, and the Government lost the revenues it had previously enjoyed on the sale of alcohol. But because they had had a tax on champagne, the Government felt it could levy a tax on fizzy soft drinks, since they fizzed in the same way as champagne. (Aftenposten)

Today’s comment from Vårt Land

Kjell Magne Bondevik is having to perform a difficult balancing act in this year’s election campaign. He has tied himself to partners in the centre alliance who could end up without a single seat in the Storting. If that happens the Christian Democrats will be forced to reorient themselves in the political landscape. The best thing Mr Bondevik can do now is to aim all his attacks at the Labour Party and Jens Stoltenberg, since they are the Christian Democrats’ least probable allies after the election. Labour is also the main opponent for the Conservatives, and with the same competitor the two parties could reasonably be expected to form a government together. It is therefore understandable that Mr Bondevik does not want to make too fierce an attack on Jan Petersen during the campaign. Obviously, Mr Bondevik’s balancing act is not popular with the Centre Party. Anything which weakens the prospect of a centre alliance government, weakens the Centre Party’s chances of winning the minimum number of votes needed to secure a seat in the Storting. There is, moreover, no doubt that the Centre Party finds Labour’s policies more to its liking than those of the Conservatives. The Liberals are in a similar position to the Christian Democrats. If the party manages to retain a seat in the Storting, Lars Sponheim would like to participate in either a centre alliance government or a coalition including the Conservatives. A month and a half before the election it is already possible to feel the political tensions rising. All the parties at the centre of the political spectrum have a lot at stake, while the parties least affected are the Socialist Left Party and the Progress Party who occupy positions on the outer fringes.