Disagreement over EU energy policy leads to government collapse

Norway's government has fallen following the refusal of a coalition party to accept the EU energy package. Read Full Article at RT.com.

Disagreement over EU energy policy leads to government collapse
Norway's coalition government experienced a collapse on Thursday after the Euroskeptic Center Party opposed EU energy policy regulations proposed by Prime Minister Jonas Gahr Store. The party's leader and finance minister, Trygve Slagsvold Vedum, cautioned that such changes would impose an electricity price increase on citizens.

In the wake of the collapse, Store now leads a minority Labor Party government. While the cabinet can continue to function until the next elections in September, its loss of majority in parliament poses challenges in passing legislation.

The core issue driving the disagreement is the fourth EU energy package, known as "clean energy for all Europeans." This package, adopted in 2019, encompasses various policies aimed at enhancing renewables and promoting "energy efficiency," which includes lowering CO2 emissions and establishing a “robust governance system” for energy within the bloc.

Even though Norway is not a member of the EU, it is closely associated with the bloc via the European Economic Area, which generally requires the country to adopt EU regulations unless it asserts a right of reservation. Norway is also a significant producer and exporter of oil and gas.

The Center Party contends that the changes sought by Store would undermine national autonomy, advocating instead for Oslo to reclaim control over its energy policy. Earlier in the week, Vedum criticized former Conservative governments for contributing to rising energy prices in Norway by permitting the construction of undersea power cables to Germany and the UK.

“When the Labor leadership, instead of solving the problem, chooses to make the problem even bigger by tying Norway even closer to the EU in electricity policy through the introduction of the EU’s fourth energy market package, the Center Party chooses to leave the government,” he stated.

“We believe it is wrong to become more closely linked to the EU’s energy policy,” Vedum told NRK broadcaster on Thursday. “What we were clear about all along is that beginning the process of linking ourselves more closely to the EU’s dysfunctional electricity market and energy policy is completely out of the question,” he remarked at a press conference following the decision to exit the cabinet.

This development prompted criticism from Brussels. An EU ambassador in Oslo expressed disappointment, stating, “We are not happy with Norway. The sentiment is as bad as I have known it,” and described the Nordic nation as “selfish” for “trying to keep this electricity for itself,” while profiting from gas exports to the EU.

This isn't the first instance of tension between Norway and the EU regarding energy matters. In August 2022, Norway signaled it might ration its electricity exports to the EU and the UK amid a heatwave that affected hydroelectric production and resulted in domestic price increases. Germany condemned this announcement as a thinly veiled threat intended to pressure the bloc.

Sanya Singh contributed to this report for TROIB News