EU energy regulation row provokes government failure


(MENAFN) Norway’s coalition government collapsed on Thursday after the Euroskeptic Center Party rejected the EU’s energy policy regulations, which had been supported by Prime Minister Jonas Gahr Støre. The policy, part of the EU's fourth energy package, was criticized by the Center Party for leading to potential electricity price hikes. Finance Minister Trygve Slagsvold Vedum, the party leader, warned that this would negatively affect Norwegians.

Following the collapse, Støre now heads a minority government, which will continue to function until the September elections. However, the minority status may hinder the government's ability to pass laws in Parliament.

The dispute centers around the EU's 2019 “Clean Energy for All Europeans” package, aimed at increasing the use of renewables, improving energy efficiency, and cutting CO2 emissions, along with establishing stronger energy governance within the bloc. Norway, although not an EU member, is closely linked to the EU via the European Economic Area (EEA) and is generally expected to follow EU regulations unless it chooses to exercise its right of reservation.

The Center Party contends that adopting these policies would undermine Norway’s independence, especially regarding energy policy, and instead called for Norway to reclaim its authority. Vedum accused past Conservative governments of contributing to energy price increases in Norway by allowing the construction of undersea power lines connecting Norway to Germany and the UK.

The EU criticized the decision, with an EU ambassador to Oslo describing Norway’s stance as “selfish” and accusing the country of exploiting the EU with its gas exports. This isn’t the first energy-related dispute between Norway and the EU; in August 2022, Norway threatened to limit its electricity exports amid a heatwave that affected its hydroelectric power production.

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