OSLO, Norway — On a pivotal election day, Norwegians cast their votes for a new parliament, with debates centered around the future of a wealth tax that has been in place since the late 19th century.
Approximately 4.3 million citizens are eligible to vote for members of the 169-member parliament, known as the Storting. A competitive race is anticipated, primarily between the center-left bloc led by the Labor Party and a coalition of right-wing parties.
Official results are expected to be released on Tuesday, which will likely initiate weeks of coalition negotiations before a new government is sworn in by King Harald.
While the election may shape domestic policies, significant shifts in Norway's foreign policy are not anticipated. The country remains a committed member of NATO and a staunch supporter of Ukraine’s resistance against Russian aggression, although it is not an EU member.
Economically, Norway stands out as one of the wealthiest nations globally, boasting a robust welfare system bolstered by extensive oil and gas reserves, along with a sovereign wealth fund valued at around 20 trillion kroner (~$2 trillion). Its GDP per capita ranks among the highest in the world, standing above even the U.S., according to the International Monetary Fund.
The wealth tax, which is a key issue in the elections, currently levies rates up to 1.1% on assets exceeding 1.76 million kroner (around $176,000). The Labor Party advocates maintaining the tax, arguing that abolishing it could lead to a loss of 34 billion kroner (~$3.3 billion) annually. Contrarily, the Conservative Party favors reducing the tax, while the Progress Party seeks complete elimination.
Recent polls indicate that the Progress Party is leading ahead of the Conservatives, led by former Prime Minister Erna Solberg, who previously served as the senior partner in the last government from 2013 to 2021. The Progress Party's successful social media strategy, particularly appealing to younger voters, has focused on opposition to the wealth tax.
