Norway is set to elect its next parliament on September 8, 2025, in a closely contested race between the center-left bloc led by the Labour Party and the center-right bloc dominated by the populist Progress Party and Conservatives.
The country’s sovereign wealth fund, valued at $2 trillion, has become a contentious issue due to its investments in companies tied to Israel amid the ongoing Gaza war.
The fund’s investments have sparked debate, with some parties calling for divestment from companies involved in Israel’s actions in Gaza.
The Socialist Left party has stated that it will only support a future Labour government if it divests from all companies involved in what it calls “Israel’s illegal warfare in Gaza”.
Labour’s Jonas Gahr Støre has rejected this demand but expressed concerns over the fund’s investments in companies that contribute to violations of international law.
Conservative party leader Erna Solberg emphasized the importance of maintaining the fund’s investments without political influence.
Key Issues Shaping the Election
- Inequality and Taxation: Voters’ top concern, with Labour favoring stable taxes and some allies seeking stiffer rates for the wealthy to finance tax cuts for low-income families and expanded public services. Progress and Conservatives advocate for large tax cuts.
- Cost of Living: Food price inflation has climbed nearly 6% over the past year, making it a central issue in the election campaign.
- Geopolitics: Voters are growing increasingly concerned about geopolitics, with a heightened sense of skepticism towards the US under Donald Trump.
- Israel-Gaza Conflict: The sovereign wealth fund’s investments in Israel have become a lightning rod issue, with potential implications for Norway’s relations with the US.
Polls suggest that no single party will win an outright majority, and the exact combination of parties in the cabinet will depend on post-election negotiations.
Centre-left parties are expected to win 87 seats, with Labour’s Støre likely to remain in office if they join hands after the election. A centre-right win would open the door for either Progress Party leader Sylvi Listhaug or Conservative Party head Erna Solberg to head the next government.
The controversy surrounding the sovereign wealth fund’s investments in Israel may play out at the ballot box, with potential implications for Norway’s relations with the US.
Republican Senator Lindsey Graham has suggested that Washington should impose tariffs and visa revocations on Norway in response to its divestment from US companies tied to Israel.
