Historical archive

Norway Daily No. 176/01

Historical archive

Published under: Stoltenberg's 1st Government

Publisher: Ministry of Foreign Affairs

The Royal Ministry of Foreign Affairs, Oslo
Press Division

Norway Daily No. 176/01

Date: 14 September

Call for government of national unity (Nationen)

A Norwegian government of national unity should be formed as a consequence of Nato’s decision to retaliate against the terrorist attacks on the USA, according to electoral expert Frank Aarebrot. "In a situation where so much is unresolved and individuals have a heightened sense of fear, the politicians owe it to the people to show that they can stand together," he said. Mr Aarebrot emphasized that such a government must be of a limited duration. He personally feels it is absurd that the floral tributes outside the US embassy in Oslo should continue to multiply at the same time as Norwegian politicians are ready to start negotiations over a new coalition government. However, Mr Aarebrot’s proposal has met with little positive response among MPs.

Clarification sought (Vårt Land)

The Christian Democratic Party is pushing for a clarification in the coming week about whether a coalition with the Conservatives is viable. If the answer is yes, they expect Jens Stoltenberg to resign from office on 12 October, and that a new government will be in place a few days later. The Conservatives agree on the last part of this timetable.

Christian Democrats ready to negotiate (Aftenposten)

The Christian Democratic Party has given Kjell Magne Bondevik and the rest of the party leadership the go-ahead to investigate the possibility of forming a coalition partnership with the Conservatives. But the Christian Democrats are making tough demands before they are even willing to come to the negotiating table. One of the demands is probably that the Conservatives do not raise the issue of EU membership for the next four years. Other sensitive issues include development aid as well as regional and industrial policy. In addition, there is the demand that Kjell Magne Bondevik must be the prime minister in a new coalition government. They have also indicated they would like the Liberals on board too. However, the Liberals will make no decision on this matter until Monday.

Gas-fired power stations could block new government (Verdens Gang)

Jan Petersen will have to make some big concessions if he is to realize his dearest wish – to form a coalition government with the Christian Democrats. If not, issues such as the gas-fired power stations, EU membership and tax cuts could bring down his plans for a non-socialist coalition. Then comes the most difficult question of all: Who will be prime minister? "It would not only be good for the Christian Democrats, but good for the country if Kjell Magne Bondevik becomes prime minister," said Valgerd Svarstad Haugland, chairman of the Christian Democratic Party. Though both parties are officially emphasizing that policy is more important that positions, both Christian Democratic and Conservative sources have confirmed that this will be a titanic struggle for power.

Backing for reprisals (Aftenposten)

All the parties represented in the Storting gave their moral and political support to the USA yesterday, and say they have faith that US reprisals will not breach international accords. Foreign Minister Thorbjørn Jagland underlined that Norway itself will decide how we will participate in any future Nato action against the terrorists, and that the USA has not so far asked for assistance. The question of what kind of assistance Norway would provide in such a situation was not clarified at yesterday’s meeting of the Storting’s extended Foreign Affairs Committee. "Norway is not at war," said Mr Jagland, but refused to make clear what all Norwegians are asking themselves: What does it take for us to be at war, do we have to send troops or is it enough to provide intelligence assistance?

Socialist Left Party wants veto on "unwise" Nato actions (Klassekampen)

Kristin Halvorsen, leader of the Socialist Left Party, has warned the USA not to initiate any massive retaliatory strikes which could lead to civilian casualties. "Norway must veto any unwise Nato action," she said. Military action by Nato would be unwise in this situation. It would simply provide further grist to the terrorists’ mill, and would do nothing to combat terrorism," she said.

Knudsen backs down (Aftenposten)

Trade and Industry Minister Grete Knudsen has suffered another swingeing defeat in the battle for control of NOK 2.5 billion in investment capital. She wanted to hand-pick the board of directors of the new state investment fund, but has postponed a decision following massive political pressure. The Storting’s Business and Industry Committee reacted sharply to the Minister’s attempt to hand-pick the board herself, and to news that she planned to announce the names at today’s extraordinary meeting of the company. The Storting has demanded an explanation. The controversy regarding the investment fund is also a battle between the capital and the Norwegian regions. The Trade and Industry Minister is backed by capitalist interests located in Oslo, while the Storting wants to place much of the management responsibility in the hands of the state-owned, Industrial Development Corporation of Norway.

Don’t dump Norwegian shares (Dagens Næringsliv)

The Banking, Insurance and Securities Commission have warned Norwegian life insurance companies not to dump shares listed on the Oslo Stock Exchange, because of the sharp drop in prices this would cause. Share prices on the Oslo Stock Exchange have already slumped by 22 per cent so far this year. The life insurance companies’ buffer capital has shrunk substantially this summer and, if the worst comes to the worst, could be lost entirely by the end of the autumn. At the start of the year, life insurance companies owned shares in Norwegian companies worth NOK 34 billion.

Union leader forecasts massive wage hike (Dagsavisen)

"Next year’s wage rises will be expensive, but we can afford it," said Per Østvold, leader of the Norwegian Union of Transport Workers. Mr Østvold, who led the strike action in connection with last year’s wage negotiations, is demanding a minimum five per cent wage increase across the board, as well as a substantial boost for low-paid workers and a new pension scheme. The militant union boss dismisses as ridiculous proposals by the Confederation of Norwegian Business and Industry (NHO) to abolish nationwide wage negotiations between themselves and the Norwegian Confederation of Trade Unions (LO).

Worth Noting

  • Bishop Gunnar Stålsett led the royal family, diplomats, politicians and ordinary people in prayers for world peace yesterday during a memorial service at the Oslo Cathedral for the victims of Tuesday’s terrorist attacks in the USA. In his sermon Bishop Stålsett asked that we not let our anxiety get the better of us, but that we should acknowledge the pain felt by those whose family members are dead or missing, or lying injured in hospital. Prime Minister Jens Stoltenberg called for every citizen to stand united to prevent the forces of evil from taking control of our lives and our society. He also appealed to the Norwegian people to remember those on the other side of the Atlantic who have lost so much. (Aftenposten)
  • The Norwegian government has offered to send 15 forensic experts to assist in the identification of the victims of Tuesday’s attack on the World Trade Centre in New York. If the US authorities accept Norway’s offer, the Norwegian police officers will be faced with an extremely difficult identification challenge. (Dagsavisen)
  • The terrorist attacks in the USA have cost the Norwegian Wilhelmsen family over NOK 3 billion after the price of shares in the cruise line, RCCL, sank like a stone. (Verdens Gang)
  • The Norwegian Coastal Voyage is afraid that US citizens will reduce the amount of travelling they do following Tuesday’s terrorist attacks in the USA. The shipping lines have already received the first cancellations from the USA. (Dagens Næringsliv)
  • The number of applications for early retirement under the AFP scheme has been cut by more than half compared to last year, according to figures published by the local authority pension fund, KLP. The trend is the same in the private sector, reports the employers’ confederation, the NHO, while the number of government employees seeking early retirement has started to rise again. The drop in the numbers taking early retirement under the AFP scheme is the result of a change in the regulations which came into effect 1 August last year. The change cut to NOK 4,000 the amount of earned income a person can receive before pension benefits are reduced accordingly. Prior to this, an AFP pensioner could earn up to NOK 50,000 per year without losing pension benefits. (Nationen)

Today’s comment from Verdens Gang

Nato’s pledge to take part in joint military actions against those responsible for Tuesday’s atrocities in New York and Washington D.C. is a landmark decision. It is the first time in Nato’s 52-year history that such a decision has been made. At its most extreme it means that Norwegian soldiers and military equipment could be deployed in a US-led military strike, though it seems very unlikely that Norway would be asked to make such a contribution. Nato’s explicit proviso for invoking article five of the North Atlantic Treaty is that there should be proof that the terrorist actions were masterminded from abroad. If the USA presents such evidence to its Nato allies and asks them to act in accordance with article five, there can be only one outcome. The alliance will take joint military action, and Nato – including Norway – will be at war, even though our country never fires a shot. Norwegian politicians have obviously never considered the possibility that article five could work the opposite way to the popular conception here at home – that superpower USA would unhesitatingly come to the aid of little Norway. But today it is Norway whose help could be called upon by its big brother across the Atlantic. Our obligations to the USA are just as binding as the USA’s obligations to Norway have been for the past 50 years. It is these obligations, set out in article five of the North Atlantic Treaty, which have formed the very foundation of Norwegian defence and security policy since Nato was created. Norwegian politicians have a duty to explain the seriousness of today’s situation and the obligations Norway has assumed as a nation. For this reason we are not particularly impressed by the statements made by Foreign Minister Thorbjørn Jagland and the Foreign Affairs Committee chairman, Einar Steensnæs (Christian Democrat), after yesterday’s meeting of the Storting’s extended Foreign Affairs Committee. Politicians obviously need to avoid contributing to war fever, but there must be absolutely no doubt about Norway’s obligations. We owe it to the USA, who has been our guarantor of peace and security for more than half a century.