OSLO, Norway (FlashPoint) — On Monday, the citizens of Norway participated in crucial parliamentary elections where the future of a wealth tax, established in the late 19th century, has emerged as a central topic.
Approximately 4.3 million eligible voters were included in this election for the new 169-member parliament, known as the Storting. A competitive race is anticipated between a center-left coalition spearheaded by Labor Party Prime Minister Jonas Gahr Støre and a right-wing faction.
Official results are expected on Tuesday, potentially followed by weeks of coalition-building and negotiations over Cabinet appointments before King Harald can officially endorse a new government.
The election outcomes are unlikely to disrupt Norway's foreign policy stance, which firmly supports NATO initiatives and Ukraine's defense against Russia, given their Arctic border. Although Norway is not an EU member, it enjoys substantial economic ties with the union.
Renowned as one of the world's wealthiest nations, Norway has a robust welfare system bolstered by extensive oil and gas reserves and maintains one of the largest sovereign wealth funds globally, estimated at about $2 trillion. The country's GDP per capita ranks sixth worldwide, surpassing even the United States according to the International Monetary Fund.
Labor intends to uphold the wealth tax, a cornerstone of Norwegian policy since 1892, which levies up to 1.1% on assets exceeding 1.76 million kroner (approximately $176,000), with various exemptions and deductions available. Eliminating the tax is estimated to cost the nation about 34 billion kroner ($3.3 billion) annually.
On the contrary, right-wing parties are advocating for a reduction or complete abolishment of the tax. Polling indicates that the Progress Party, led by Sylvie Listhaug, is currently more favorable among voters than the Conservatives, previously headed by former Prime Minister Erna Solberg. Their advanced social media campaign seems to resonate particularly well with younger constituents concerned about the wealth tax.
As the polling results are awaited, citizens remain engaged, reflecting their strong interest in the election's implications for Norway's economic and social policies.
