Strike averted (NTB)

The Norwegian United Federation of Trade Unions and the Federation of Norwegian Engineering Industries have unanimously recommended a mediation proposal from the state mediator giving workers in heavy industry a real pay raise of approximately 3.5 per cent, thus averting a strike in the engineering industry. The unions and employers have agreed on a general hourly raise of NOK 2.75 across the board, plus local discussion of pension plans and a higher offshore raise. There will be no change in the work day. "This is more than our trading partners have had to take – maybe 1,5 to 2 per cent more. But we have accepted it because we believe it is the best result we could obtain considering the current pressure on the labour market," says Karl Nysterud, director of the Federation of Norwegian Engineering Industries.

Interest rates are now the joker (Aftenposten)

Labour settlements must now pass muster at a higher level. Central bank chairman Svein Gjedrem is ready to step in and raise interest rates if labour settlements are too expansive. "This is the first labour settlement to take place since the central bank was instructed to keep price inflation down to 2.5 per cent. What this means is that Mr. Gjedrem is authorized to take action. Higher mortgage rates can quickly cancel out whatever pay gains wage-earners may win," says Knut Røed of the Frischsenteret, a research foundation.

Smokers stumping in record numers (Aftenposten)

Only 30 per cent of adult Norwegians now smoke. "The number of smokers we have registered has never been lower, and never before have so many quit in a single year. The international trend which started in the USA ten years ago, coupled with our own legislation against smoking, explains much of this drop," says Bjørn-Inge Larsen, a director at the Ministry of Health and Social Affairs. The number of young people who smoke has remained constant since the mid-1980s, and there was no change last year either. The goal of the Minister of Health is to reduce the number of smokers by half within the next five years.

Cautious opening for EU debate (Dagsavisen)

Liberal party leader Lars Sponheim is reluctant to revive the EU debate at this point, but he is open for doing so in 2005. "Time flies, and 2005 will be here soon. The Liberals will have to take a new look at their EU argumentation," he says. He is still against joining the EU, but, he says: "I do not guarantee that this will still be my view ten years down the road".

Stoltenberg hopes the tide has turned (Verdens Gang)

Today’s opinion poll gives all parties the same ratings they had in March. Jens Stoltenberg (Labour) hopes the fortunes of his beleaguered party are now turning. "Yes, 19.5 per cent is better than 14 per cent. But we hope we have touched bottom and that this poll indicates that the trend is turning," he says. The same poll gave the Conservatives a 23 per cent rating, making it Norway’s biggest party, ahead of the Progress Party, at 22 per cent.

Petersen must inform foreign affairs committee

"Foreign Minister Jan Petersen and Minister of Defence Kristin Krohn Devold must give an account of what Norwegian soldiers are actually doing in Afghanistan," says Åslaug Haga (Centre), secretary of the Storting’s Foreign Affairs committee. The committee has yet to be briefed on Norway’s war effort in Afghanistan, and Ms. Haga will demand today that Mr. Petersen give the enlarged Foreign Affairs committee a full account.

Christians to present themselves as living shields in Palestine (Vårt Land)

Christians from Norway are on their way to the Palestinian territories to act as living shields for ambulances and otherwise accompany civilians in the midst of this conflict. "We have already had some measure of success. Israel does not want to be seen as a perpetrator of atrocities – we have seen that with church representatives aboard, the ambulances get through more quickly. Our intention is to make ourselves available as far as possible to people on both sides of the conflict, as well as to gain as much insight as possible through our participation in their day-to-day lives," says Jorun Kapstad of the Norwegian Church Aid.

Worth noting

• The EU Commission is putting pressure on EFTA Surveillance Authority President Einar Bull to reduce the level of Norwegian rural support in the name of the EEA Agreement. Mr. Bull has now announced that the cuts will come, and the Norwegian regions stand to lose several billion kroner. (Klassekampen)
• A growing number of bishops are becoming increasingly critical of Israel’s war effort in the Middle East. Israel may be about to lose its support from Christian Scandinavia. (NTB)
• The war in the Middle East may drive petrol prices and interest rates up and trigger a downturn in the world economy. The price of oil is skyrocketing – seven dollars in one month have pushed prices to USD 27 per barrel. All this is bad news in the midst of Norway’s labour negotiations. (Verdens Gang)
• The use of studded tires rose this winter in Oslo, but so far there are no plans to reinstate road use fees for studded tires in Oslo. (Dagsavisen)
• The Federation of Norwegian Commercial and Service Enterprises has inflated its membership figures. The organization now discussing a merger with the Confederation of Norwegian Business and Industry is only half as large as it claims. (Dagens Næringsliv)
• The contest over punitive tariffs for Norwegian salmon imports to the EU may be decided this week. The antidumping committee will be dealing with the case on Thursday. (Aftenposten)
• The European Court on Human Rights has decided that sleep is a human right. This decision may mean the end of all night flights in Europe, including Norway. (Dagsavisen)

Ttoday's comment from Aftenposten

According to Liberal party chairman Lars Sponheim, the Government is doing nothing that conflicts with the Liberal party programme. Speaking to the press yesterday, he said that the Liberals have never had such a good opportunity to influence public policy, at least not in modern times. If we are to believe Mr. Sponheim, the sitting Government is really in the political centre, as the current parliamentary situation allows greater scope for acting independently of political blocs than did the situation under which the first Bondevik Government was working. He explains that the reason why the Liberal Party is doing so poorly at the polls is that its organization and PR have not been effective enough. Nonetheless, the mood among party leaders in the run-up to this weekend’s national convention was upbeat. Whether or not the delegates to the convention are as confident as Mr. Sponheim that the party is in a unique position remains to be seen.