Budget Tensions: Norway's Political Landscape in Flux

Norway's Labour government struggles to pass the 2026 budget due to disagreements over oil drilling and Israeli investments. The government faces a vote of confidence if no agreement is reached by Friday, with minority parties' support crucial in the fragmented political environment.

Norway's Labour government missed the mark on securing support for its 2026 budget by the set end-November deadline. Intense negotiations are set to resume in parliament, centered on controversial issues like oil drilling and the wealth fund's investments in Israel, according to a key negotiator on Monday.

The Norwegian parliament is scheduled to vote on the budget on Friday. If no compromise is struck, Prime Minister Jonas Gahr Stoere may face a vote of confidence, putting his minority government's stability at risk. Having narrowly secured a second term, the Labour Party depends on smaller left-wing entities to pass the budget.

Concerns over a potential government collapse come as the Green Party and Socialist Left express dissatisfaction. Key issues include the sovereign wealth fund's investments in Israel and climate policies. Chair of the finance committee, Tuva Moflag, vowed continued efforts to secure a budget majority by Friday.

(With inputs from agencies.)