Conservatives claim narrow victory in Norway election

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Conservative Prime Minister Erna Solberg on Tuesday declared victory after Norway's parliamentary elections, narrowly defeating a Labour-led opposition with her promises of tax cuts and steady economic management.

"It looks like a clear victory" for the center-right, Solberg told cheering supporters in Oslo following Monday's voting. It is the first time a Conservative government has retained power in Norway since 1985.

Norway's Prime Minister Erna Solberg and her daughter Ingrid Solberg Finnes celebrate the election results in Oslo, Norway on September 11, 2017. /Reuters Photo

"Our solutions have worked. We have created jobs," she said, before warning: "We have some challenges ahead. ... Oil revenues are going to be lower. We all must take responsibility."

The ruling minority coalition of her Conservatives and the populist Progress Party, together with two small center-right allies, was set to win a slim majority with 89 seats in the 169-seat parliament, according to an official projection with 95 percent of the votes counted.

"It's a big disappointment," opposition Labour leader Jonas Gahr Stoere said, conceding defeat for his party that has been a dominant force in Norwegian politics for a century.

Norwegian Labour Party leader Jonas Gahr Stoere greets supporters and campaign workers at election night party in Oslo, Norway September 11, 2017. /Reuters Photo‍

Solberg's Conservative Party was set to lose three seats to 45 in parliament, making her more dependent on outsiders' help and perhaps heralding a less stable government.

The oil industry could be affected by the vote, because Solberg will need support from two green-minded, center-right allies to ensure a majority to pass legislation in parliament. One of the two parties, the Liberals, wants strict limits on oil and gas exploration in Arctic waters.

For much of the year, Labour and its allies were favored by pollsters to claim victory, but support for the government has risen as the economy gradually recovered from a slump in the price of crude oil, Norway's top export.

Norway's Prime Minister Erna Solberg speaks on election night in Oslo, Norway, September 11, 2017. /Reuters Photo

Solberg has won credit for the upturn with a no-nonsense style of management. Norway's economy also has the cushion of a sovereign wealth fund worth almost one trillion US dollars, the world's biggest, built on income from offshore oil and gas.

"Regardless of which government we get, the challenge will be to use less oil money," said Erik Bruce, chief analyst at Nordea Markets. "There is broad consensus about the outlook for the sovereign wealth fund and the Norwegian economy, which means a tighter fiscal policy."

Apart from its sovereign wealth fund, Norway tops UN lists of the best country in which to live, based on issues such as per capita gross domestic product, education and life expectancy. It also rose to first, from fourth, in a 2017 survey that ranked nations by happiness.

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Source(s): Reuters