Norway's ruling coalition government has fractured following disagreements over the adoption of EU energy market rules, with the eurosceptic Centre Party announcing its departure. The move leaves the Labour Party, led by Prime Minister Jonas Gahr Støre, to lead a minority government until the upcoming elections in September.
The split centers on differing views over the integration of Norwegian energy policy with EU regulations. The Centre Party, led by former finance minister Trygve Slagsvold Vedum, opposed the adoption of EU laws aimed at increasing energy efficiency and renewable energy targets, as well as expanding the powers of the EU's regulatory agency, ACER.
Vedum criticized the proposed changes, arguing that they would undermine Norway's control over its energy system. “The goal of the fourth energy market package is for Norwegian hydropower to supply the EU with electricity when it is not windy or sunny … this will result in even higher and even more unstable electricity prices in Norway,” he said in a statement.
Norway, while not an EU member, participates in the European Economic Area (EEA), which grants it access to the EU single market but also subjects it to a range of EU regulations. The Centre Party has expressed concerns that the EU-driven policies would lead to rising electricity prices for Norwegian households and businesses, advocating instead for a return of national control over the country's energy market.
“The Centre Party's ambition is now to use our power in the Storting to change Norwegian electricity policy before the election,” Vedum added.
The political rift leaves the Labour Party in charge of a minority government, tasked with navigating these contentious energy issues until the next election.
