OSLO, Norway (AP) — Norway’s center-left block led by the Labor Party of Prime Minister Jonas Gahr Støre is on track to win Monday’s general election with most votes counted and forecasts by local broadcasters showing a narrow but clear victory over the right-wing parties.
A rapturous celebration erupted in Oslo on Monday night as Labor supporters gathered to celebrate a closely fought campaign in which the future of a wealth tax that dates to the late 19th century has been a central issue. But while Gahr Støre can expect to lead the Scandinavian nation for four more years, the rise of Norway's populist Progress party becoming the second biggest in parliament will be of concern.
Final results are expected Tuesday, and they are likely to be followed by weeks of negotiations to build a coalition and agree on Cabinet positions before King Harald can swear in a new government.
The result isn’t likely to have major implications for Norway’s foreign policy. The country is a stalwart member of NATO and a strong supporter of Ukraine’s defense against Russia, with which it has a border in the Arctic north. It isn't a member of the European Union but has close economic ties with the 27-nation bloc.
Norway is one of the richest countries in the world. It has a generous welfare state, sits on billions of barrels of oil and gas, and has one of the world’s largest sovereign wealth funds, worth around 20 trillion kroner ($2 trillion). Gross domestic product per person is the sixth-highest in the world, one place above the U.S., according to the International Monetary Fund.
It is also one of the world’s most egalitarian countries, sharing its wealth much more evenly than many others.
Labor campaigned to keep the wealth tax that has been a mainstay of Norwegian policy since 1892 — a levy of up to 1.1% on assets and shares worth more than 1.76 million kroner (around $176,000), though there are various reductions and discounts. Labor said that scrapping it would cost 34 billion kroner ($3.3 billion) per year.
Of its rivals on the right, the Conservatives want it reduced and the Progress Party of Sylvi Listhaug, which calls for lower taxes and more immigration controls, wants it scrapped.
Polls have shown Listhaug’s party ahead of the Conservatives, led by former Prime Minister Erna Solberg, who were the senior partner in the last center-right government from 2013 to 2021. The Progress Party has been bolstered by an energetic social media campaign, driven by youthful influencers who have inspired younger voters against the wealth tax.
“I think it is fair that the most wealthy among us pay their contribution,” Gahr Støre said after he voted on Monday. “It’s been the parties of the right who wanted to take that entirely away, benefiting 1% of the population."
"I think that goes against the deep sense of fairness and solidarity from Norwegians,” he said.
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