Norway

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Declining Support for Labor

The parliamentary elections held in September 1961 resulted in the failure of the Labor Party to win a majority of seats for the first time since World War II, although it kept its place as the leading party. Gerhardsen, who had been prime minister since the end of the war, except for an interval from 1951 to 1955, was designated once again to head the cabinet. In 1965 the Labor Party was defeated in general elections, ending a 30-year period of rule. King Olaf V, who had succeeded Håkon VII on the latter’s death in 1957, then asked Per Borten, leader of the Center Party, to form a government as head of a coalition of nonsocialist parties. Norway’s economic policies, however, did not markedly change. Norway instituted a comprehensive social security program in 1967.

Although it was not obvious at the time, the Labor Party’s defeat in 1965 had closed an era in Norwegian history. The dominance of the Labor Party was at an end. Although it would continue to be Norway’s largest party, Labor would no longer be able to achieve majority status on its own. The succeeding decades of the 20th century would be characterized by coalition governments and conflict over Norway’s place within Europe.

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Political Shifts and Internal Divisions

In 1970 Norway applied for membership in the European Community (EC), now called the European Union (EU), a move that split the citizenry and government. Many Norwegians opposed membership, fearing that their fishing, farming, and other industries would be at a competitive disadvantage. The following year Per Borten resigned after charges surfaced that he had divulged confidential information. Trygve Bratteli of the Labor Party then formed a minority government that campaigned strongly for EC membership. In a referendum in 1972, however, the voters rejected the government’s recommendation. As a result, the government resigned and was succeeded by a centrist coalition headed by Lars Korvald of the Christian People’s Party. In 1973 Norway signed a free-trade agreement with the EC. Labor suffered considerable losses in the 1973 elections, but Bratteli again was able to form a minority government.

Bratteli resigned in 1976, but the party remained in power until the elections of 1981. From February to October 1981, the party was headed by Gro Harlem Brundtland, Norway’s first female prime minister. The nonsocialist parties gained a comfortable majority in September, and Kåre Willoch of the Conservative Party formed a coalition government in October. A broader coalition government, again headed by Willoch, was formed in 1983 and was reelected in 1985.

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Petroleum and natural gas deposits had been discovered in the Norwegian sector of the North Sea in the late 1960s, and exploitation by a state company began in the 1970s. By the early 1980s oil and gas from the North Sea fields accounted for some 30 percent of Norway’s annual export earnings. Oil prices dropped abruptly in 1985 and 1986, and the prospect of lower tax revenues and reduced export earnings led the Willoch government to call for higher gasoline taxes in April 1986. Willoch lost a vote of no confidence on the issue and was succeeded by a minority Labor government led by Brundtland. She resigned after inconclusive elections in 1989, carrying Labor into the opposition.

Jan P. Syse of the Conservative Party succeeded Brundtland as prime minister, heading a minority center-right coalition. The Syse government’s tenure, however, was short. Unable to agree on a common position concerning future relations with the EC, it fell in 1990 and was replaced by another minority Labor government led by Brundtland. Again, Norway’s relationship with Europe was at the center of national politics. The death of King Olaf V in January 1991 and the succession by his son, Harald V, left Norwegians mourning their beloved king but still split on the issue of joining the rest of Europe. The Center Party emerged as the principal opponent of integration, arguing that Norwegian sovereignty would be compromised and its welfare state policies eroded.

Brundtland’s Labor government returned to power following the 1993 general election. In May 1994 the European Parliament endorsed membership for Norway in the EU. However, aided by a rush of Norwegian patriotism and nationalism following the Lillehammer Winter Olympic Games in February 1994, Norwegians voted down membership in the EU in a November 1994 referendum.

Brundtland had stepped down as Labor Party leader in 1992 and was replaced by Thorbjørn Jagland. In 1996 Brundtland abruptly resigned as prime minister and was succeeded by Jagland. Jagland’s term in office was marred by scandals among his cabinet members, and he was sharply criticized by the opposition for rejecting a proposal to increase pension payments for the elderly. Although the Labor Party won the largest share of seats in the 1997 general election, Jagland stepped down as prime minister, honoring his pledge to resign the post should his party receive fewer votes than it did in 1993. An alliance led by Kjell Magne Bondevik, a leader of the Christian People’s Party, attracted enough support to form a government. Bondevik’s minority coalition government also included the Center and Liberal parties.

Bondevik resigned as prime minister in 2000 after losing a no-confidence vote over the issue of whether to build gas-fired electricity plants in Norway. Bondevik strongly opposed the plants, which would have required Norway to amend its strict antipollution laws. Bondevik was replaced by Labor Party leader Jens Stoltenberg. Stoltenberg, although initially providing a spark when he took over as prime minister, was unable to stem the electoral decline of the Labor Party, which suffered a devastating defeat in the 2001 elections.

Bondevik returned as prime minister leading a new center-right coalition of the Christian People’s Party, the Conservative Party, and the Liberal Party. The coalition’s platform included lower taxes, more privatization, and reforms in health care, education, and welfare. In order to gain a parliamentary majority, Bondevik’s coalition won backing from the far-right Progress Party, which, although the largest nonsocialist party after the 2001 elections, remained formally outside the coalition. Over the next four years Bondevik’s government implemented major economic reforms, including tax cuts for businesses. Meanwhile, record high oil prices on the world market boosted government revenues and led to unprecedented economic prosperity in Norway.

Management of the country’s huge oil wealth became the central debate in the 2005 election campaign. Labor Party leader Stoltenberg accused Bondevik’s government of neglecting welfare services and promised to spend more on health care and education. Bondevik advocated additional tax cuts, which Stoltenberg opposed. In September voters overwhelmingly supported Stoltenberg’s center-left bloc, which included the Labor, Socialist Left, and Center parties. The bloc won 87 seats in the 169-member Storting (parliament), giving Norway its first majority government in 20 years. As leader of the Labor Party, which won 61 seats, Stoltenberg became the new prime minister.

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Foreign Affairs

In foreign affairs Norway has sought to expand its participation in international organizations such as the United Nations (UN). Norway has also emphasized its commitment to international peace talks, demonstrated in 1993 by its role in hosting negotiations between Israel and Palestinians, which resulted in the establishment of the Palestinian National Authority under the so-called Oslo Accords. Since then, Norwegian diplomats have sought to help resolve international conflicts in many regions, including Afghanistan, Colombia, Guatemala, East Timor, Sri Lanka, Somalia, and Sudan. However, the character of Norway’s larger place within Europe—exemplified by the debate over Norway’s possible membership in the European Union (EU)—remains a divisive and unresolved issue.

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