Norway's Labour Government Struggles to Secure Critical Budget Support

Norway's minority Labour government faces a challenge in passing its 2026 budget, requiring support from small parties. Oil drilling and Israeli investments are key issues. Prime Minister Stoere could call a confidence vote if no consensus is reached. Analysts believe Labour may still retain power amid these negotiations.

Norway's minority Labour government is struggling to secure parliamentary backing for its 2026 draft budget. Talks are ongoing, focusing on contentious issues like oil drilling and investments by the country's sovereign wealth fund in Israeli companies.

On Monday, Labour's negotiator indicated that discussions will proceed as the Norwegian parliament is set to vote on the budget this Friday. The government, led by Prime Minister Jonas Gahr Stoere, might face a vote of confidence if no agreement is reached, threatening the cabinet's stability.

After a narrow re-election in September, the Labour administration relies on support from four smaller left-wing parties. However, the Green Party walked out over oil industry concerns, and the Socialist Left exited due to disagreement over Israeli investments. Despite these challenges, analysts suggest Labour could regain power if the government collapses, though securing a budget remains uncertain.

(With inputs from agencies.)