Tenfold increase in price demanded by EU for EEA Agreement (Aftenposten)

The EU is demanding that Norway should pay ten times more into the Union’s coffers than it does today, and yesterday indicated a net cost of NOK 3-3.7 billion. Norway rejected the demand as "unacceptable" when negotiations for a renewal of the EEA Agreement got underway in Brussels yesterday. "Norway cannot accept the EU’s basis for the financial contribution to the EEA Agreement," said EFTA’s chief negotiator, Norway’s Ambassador to the EU Bjørn T. Grydeland.

Heart specialist slams anti-smoking campaign (Dagbladet)

"This is pure manipulation and a blatant fabrication. I have nothing against the use of strong tactics, but I am extremely dubious about the use of fabricated effects that do not correspond to reality. From an ethical point of view this is indefensible," said professor Jan Helge Solbakk, commenting on the images the Directorate of Health has employed in its latest anti-smoking campaign. Heart surgeon Mons Lie, head of the centre for heart and lung disease at Ullevål University Hospital in Oslo, says that the images used in the anti-smoking campaign have no foundation in reality.

Oslo air far over toxic limit (Aftenposten)

For the fourth day in a row, exhaust fumes and smoke are covering the capital like a toxic blanket. A layer of warmer air is keeping the cold, dirty air of the Oslo basin locked in place. Hilde Barstad, Oslo’s municipal commissioner for transport and the environment, wants the introduction of new rules to limit car use, but her call has been turned down by the Directorate of Public Roads. She now intends to raise the matter once again. Lower speed limits and a ban on the use of vehicles without catalysers have already been discussed.

Petroleum fund with major investments in ethically dubious companies (Dagsavisen)

The major local authority insurance company, KLP, announced yesterday that it was pulling its investments out of 27 companies following an ethical cleansing of its share portfolio. But the Government Petroleum Fund has investments in 25 companies considered ethically dubious, which means that the Norwegian welfare state is financed by the profits from companies which, according to the UN and others, have violated human and labour rights, and damage the environment.

Røkke was planning to acquire ABB Oil and Gas (Dagens Næringsliv)

As part of his secret bid to acquire ABB’s oil and gas division, Kjell Inge Røkke and the law firm BA-HR decided to disguise the success fee paid to former Health Minister Tore Tønne. This was in order to avoid the perception that Aker RGI and Aker Kværner were too closely linked together. Mr Tønne’s NOK 1.5 million fee was therefore disguised as payment for legal assistance carried out by BA-HR. Three months later, in October last year, the money was paid to Mr Tønne.

Minister fears electricity prices could rise still further (Verdens Gang)

Petroleum and Energy Minister Einar Steensnæs is afraid that today’s electricity prices could get even worse. "The price of electricity could still rise, despite the fact that it has fallen somewhat in the past few days. We are dependent on the weather changing and that industry, the public sector and consumers in general are successful in saving electricity," said Mr Steensnæs yesterday when he opened the UN’s International Year of Fresh Water.

MP calls for investigation of Kanal4 affair (Dagbladet)

Progress Party cultural affairs spokesman, the MP Ulf Erik Knudsen, contacted the National Authority for Investigation and Prosecution of Economic and Environmental Crime in writing yesterday, demanding that they investigate the circumstances surrounding the granting of P4’s broadcasting licence to rival radio station, Kanal4. Mr Knudsen’s demand is based on the fact that seven ministers have links to the consortium of companies which owns Kanal4. Socialist Left Party MP Ågot Valla said that the revelation of ties between Kanal4 and government ministers was astonishing.

Strong NOK opens way for further cut in interest rates (Aftenposten)

The probability of a further cut in interest rates is growing practically day by day. The cut may be announced as early as 22 January, since the Norwegian krone continues to go from strength to strength in the currency markets. "The strengthening of the exchange rate in recent weeks is certainly the single most important factor in support of another cut in interest rates on 22 January. If the krone continues to strengthen as 2003 progresses, it could lead to even more cuts," said Øystein Dørum, chief economist at DnB Markets.

Clemet to give teachers greater freedom (Aftenposten)

Education Minister Kristin Clemet intends to simplify the school curriculum, giving it clearer targets but placing less emphasis on methodology and activities. She is therefore moving promptly to respond to the recommendations from the OECD, which believes that greater freedom and clearer outcome targets will make the Norwegian education system more effective.

Armed Forces ordered to undertake massive real estate sell-off (Dagsavisen)

By means of the biggest real estate sell-off in history, the Norwegian Armed Forces will balance the Government’s books. With a little accounting wizardry and cost cutting, and by selling off more real estate than originally planned, the Armed Forces – which this year will cost around NOK 30 billion – will provide the state with NOK 100 million in additional revenues. The Norwegian Defence Estates Agency hopes to sell various kinds of real estate totalling 250,000 square metres.

Worth Noting

• All the negative media attention given to MPs’ generous pension schemes and other special benefits has been damaging for the Storting. The Storting’s Presidium has now appointed an internal committee to look into all the lucrative – and highly criticized – schemes enjoyed by MPs. The committee’s recommendations will be debated in an open session of the Storting.
  (Aftenposten)
• Axel Krogvig, chief executive of the farmers-owned Norwegian Meat Cooperative, wants Norway to join the EU. Jan Ove Holmen, head of the dairy cooperative, Tine, does not want to fight a war against membership. The last time membership was a real issue, the Norwegian agricultural cooperatives played a major role on the side of those opposing membership.
  (Nationen)
• The average grade achieved by Christian private schools was higher than that achieved by state lower secondary schools, according to the national list of final-year grades which was published by the Board of Education on Wednesday. Among the reasons given for the private schools’ strong results are the close follow-up of pupils and a positive school environment.
  (Vårt Land)
• The Director General of Public Prosecutions Tor-Aksel Busch wants to penalize the individuals who photographed Veronica Orderud right after she was sentenced to 21 years’ imprisonment. According to Mr Busch, she had not given her permission to be photographed, she was photographed right outside the court building and the photographs were taken deliberately.
  (Aftenposten)
• You will not find many foreigners at the country’s shooting ranges. Membership of shooting clubs is restricted to Norwegian citizens. As a matter of national security, foreigners are refused membership of the National Rifle Association of Norway. Conscientious objectors, on the other hand, are warmly welcomed.
  (Nationen)
• From 1 January the property registration fee rose by 30 per cent. That means you will have to pay NOK 805 more into the public purse when you buy a new home. "This change also hits everyone who wants to switch banks in order to get a lower mortgage rate," said Ommund Braut of Norsk Familieøkonomi. Finance Minister Per-Kristian Foss refused yesterday to comment on the price hike.
  (Dagbladet)
• We spend more and more of our holidays abroad. A NOK 20 million campaign is now being launched to get us to spend more of our holidays in Norway. The Norwegian Tourist Board has put together the campaign which is designed to make Norwegians understand that Norway is a good place to holiday in. "The number of Norwegians holidaying abroad is higher than the number of Norwegians holidaying in Norway. The Norwegian tourist industry wants to reverse this trend," said Børre Berglund, head of the Norwegian Tourist Board.

Today’s comment from Aftenposten

The negotiations to extend the EEA Agreement got underway in Brussels yesterday. At stake are billions of kroner. It is indicative that the parties are meeting around a circular table, which – just to be on the safe side – has room for 120 people. The chief negotiators are refusing at this stage to discuss the details of the negotiations. But no one expects Norway and the two other EFTA countries to get away with as inexpensive an EEA Agreement as we have had up to now. The main issue for Norway is that the extension of the EU, and as a result the extension of the area covered by the EEA Agreement, should not create new trade barriers in Europe. Today, Norwegian exports of fish to the ten new EU member countries are secured through free-trade agreements. Norway and Iceland have therefore indicated that they will also be demanding unrestricted market access for their fish in an extended EU. For Norwegian fish exports, this could be a matter of life or death. Formally, it is the EU’s new members who are negotiating to become part of a larger European Economic Area after they have joined the EU. But in reality there are 25 European countries with a total of 420 million inhabitants on one side of the negotiating table, while on the other sit three small EFTA countries – Norway, Iceland and Liechtenstein – with a mere 4.8 million inhabitants. Norway is negotiating with an EU that is about to gain the pan-European dimension which, at the last referendum in 1994, opponents of EU membership denied could ever happen. In other words, we find ourselves in a completely new situation, in which our access to the European single market is more important than ever. At the same time, Norway and Norwegian interests have become less important for an expanded EU. It is too early to talk about a new battle over Norwegian membership of the European Union. Anyway, the EU certainly does not have time for such a triviality as it stands in the middle of a major restructuring process. Nevertheless, the situation demands that we rethink our future relations with the community on our doorstep. The first task, however, remains to conclude a new EEA Agreement that Norway can live with. This is a process in which we must be prepared to give a considerable quid pro quo to secure the concessions that will safeguard Norwegian interests. At this stage in proceedings there is no point debating the signals we have seen of demands and counter-demands. But we cannot avoid having to pay a considerably higher membership fee than we have had for the current EEA Agreement. This is because the new member countries will demand huge EU transfers in support of their fragile economies. For the first few years the expansion will be expensive. It is not unreasonable of the EU to demand that those countries outside the community who wish to benefit from an EEA link should pay their share of the bill. What the negotiations are about is the size and composition of that bill. Among the things we will have to make a decision on are the EU’s demand for greater agricultural exports to Norway and the right of EU investors to acquire a stake in the Norwegian fishing industry. We note that Prime Minister Kjell Magne Bondevik believes the EU has shown interest in keeping the EEA Agreement alive. But he cannot expect us to get an extended EEA Agreement without making considerable concessions.