Norway's Labor government hands power to center-right coalition

By DOUG MELLGREN The Associated Press 10/17/01 3:25 PM

OSLO, Norway (AP) -- Norway's long-dominant socialists gave up their grip on government Wednesday after a dismal election showing, paving the way for a center-right coalition that promised to cut taxes and spend more of the vast oil wealth on social programs.

Despite the nation's unprecedented prosperity, the Labor party was stung by its worst showing since 1924 in Sept. 10 national elections, falling to 43 seats from the 65 it gained in the last national ballot four years ago.

On Tuesday, a minority coalition of the Conservatives, the Christian Democrats and the Liberals was promised support from the populist Party of Progress to give the non-socialists a majority in the 165-seat parliament.

"It is now clear that a majority in parliament wants a new government," Prime Minister Jens Stoltenberg told the legislature, announcing the Labor government's resignation.

The Christian Democrat-led coalition will take over Friday with a platform of cutting taxes, speeding up privatization of government-owned business and spending more of the profits from Norway's offshore oil fields to improve schools, health care and other social services.

Stoltenberg, 42, submitted the government's resignation to King Harald V and advised the figurehead monarch to contact Christian Democrat Kjell Magne Bondevik about forming a new government.

An hour later, Bondevik, 54, a former prime minister, announced he was ready to form his second government.

Bondevik told reporters he felt confident "because I have a task and feel that I have a platform to stand on."

The election campaign reflected voter disgruntlement over taxes and other government fees that take nearly 50 percent of Norwegians' income and over shortages in the cradle-to-grave welfare state.

Labor also struggled to explain why billions of dollars a year in surplus oil revenues must be saved for the future, when there are waiting lists for medical treatment, childcare and elderly centers.

Political analyst Bernt Aardal said there is such common ground in Norwegian politics that a change of government will make little difference in key areas, such as membership in NATO, remaining outside the European Union and oil policy.

Membership in the 15-nation European Union has been put on the back burner after two bitter rejections in referendums over the past 30 years. Most parties agree that there is not enough public support for a new membership application.

The Dagsavisen newspaper said the most significant government change is bringing the Party of Progress into the mainstream "after a nearly 30-year stay in the political cold."

The Party of Progress was founded as an anti-tax protest movement in 1973 and opposes immigration by non-Westerners. However, it is moderate in such areas as health and welfare, the analyst Aardal said.

-- Anonymous, October 17, 2001