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Norwegian government and Socialist Left Party agree on 2022 budget

After two weeks of talks, the government and the Socialist Left Party, on Monday, reached an agreement on Norway's fiscal plan for next year.

Jonas Gahr Støre speaking to the press following a political debate in August.
The government and the Socialist Left Party have agreed on a deal. Pictured is Prime Minister of Norway, Jonas Gahr Støre. Photo by Arbeiderpartiet on Flickr.

“This is a budget that shows that it is the urn of ordinary people,” Prime Minister Jonas Gahr Støre said during a press conference.

After failing to make much progress in the early rounds of talks, the level of discussion was raised to the party leaders last week in an attempt to find a consensus.

The sticking points for the parties had been taxes, climate change, and holiday pay for workers laid-off due to the pandemic as well as record-high electricity prices.

Støre said that those laid-off because of the Covid epidemic in Norway this year would receive holiday pay during 2022, as was the case this year.

“We have now secured a scheme where what applied to those who were unemployed in 2020 applies to those who were laid off in 2021,” the PM explained.

The PM also described the budget as the greenest for many years.

The country would will not grant new oil exploration licences in virgin or little-explored areas in 2022.

“You want to see a policy that focuses on industry, climate cuts and green policy, with proper measures,” he said.

The oil industry will also see a sharp increase in CO2 tax as part of the renegotiated budget.

In addition, children in first grade will receive a free half-day place at a before or after school program next year. Dental work for young people would also become cheaper, and more financial support for orthodontics would be available.

The need to agree on a budget became more urgent for the government as Thursday was essentially the deadline for getting support for the fiscal plan due to the vote on next year’s financial package taking place that day.

Due to the government being a minority, it was thus dependent on the Socialist Left Party’s support, who had previously pulled out of talks to be part of the coalition due to significant differences, to get the majority it needed for the budget to pass through parliament.

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POLITICS

Norway’s PM says country is ready to recognise a Palestinian state

Norway is ready to recognise a Palestinian state together with other countries, its prime minister said on Friday while hosting Spanish counterpart Pedro Sanchez, who is seeking support for the cause.

Norway's PM says country is ready to recognise a Palestinian state

Norwegian Prime Minister Jonas Gahr Støre told reporters that such a decision would need to be taken in close coordination with “like-minded countries”.

“Norway stands ready to recognise the state of Palestine,” Støre told a joint press conference with Sanchez.

“We have not set a firm timetable,” Støre added.

In November, Norway’s parliament adopted a government proposal for the country to be prepared to recognise an independent Palestinian state.

Norway also hosted Israeli-Palestinian peace talks at the beginning of the 1990s, which led to the Oslo Accords.

Sanchez is currently on a tour of Poland, Norway and Ireland this week to drum up support for the recognition of a Palestinian state, according to a Spanish government spokesperson.

Speaking alongside Støre, Sanchez said Spain was “committed to recognising Palestine as a state, as soon as possible, when the conditions are appropriate, and in a way that can have the most positive impact to the peace process.”

On March 22nd, Spain issued a statement with Ireland, Malta and Slovenia on the sidelines of an EU leaders summit, saying they were “ready to recognise Palestine” in a move that would happen when “the circumstances are right”.

Last week, Sanchez told reporters travelling with him on his Middle East tour that he hoped it would happen by the end of June.

Støre on Friday said that he welcomed Sanchez’s initiative to consult among countries to “strengthen coordination”.

“We will intensify that coordination in the weeks to come,” Støre said.

The Spanish leader has repeatedly angered Israel with his outspoken comments since the start of the war between Israel and Hamas.

The war in the Gaza Strip erupted after Hamas’s unprecedented attack on southern Israel that resulted in the deaths of 1,170 people, mostly civilians, according to an AFP tally based on official figures.

Israel’s retaliatory offensive has killed at least 33,634 Palestinians, most of them women and children, according to the health ministry in Hamas-run Gaza.

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