Norwegian coalition collapses over EU energy row, raising concerns for seafood exports.
Norway’s coalition government collapsed on Thursday after the eurosceptic Centre Party withdrew in protest against EU renewable energy directives, a move that could have broader implications for the country’s economic ties with Brussels—including seafood exports.
Trygve Slagsvold Vedum, the Centre Party leader and former finance minister, said his party could not accept three EU directives aimed at expanding renewable energy and improving energy efficiency.
“Enough is enough, this is the limit,” Vedum said, arguing that Norway needed to regain control over electricity policy and avoid further integration with EU energy markets.
His decision deprives Prime Minister Jonas Gahr Støre of his only coalition partner and eight of the 20 members of his cabinet, including the defence, finance, and justice ministers. Støre’s Labour Party will now govern alone for the first time in 25 years, significantly weakening its ability to pass legislation ahead of the September elections.
Implications for the Seafood Sector
The political crisis comes at a time of growing tensions between Norway and the EU, particularly over energy exports. Oslo has faced criticism from Brussels for limiting power exports via interconnectors to Britain, Germany, and Denmark.
A senior EU diplomat recently told the Financial Times: “Norway looks selfish, trying to keep this electricity for itself even as it makes so much money from selling gas to us.”
The EEA Agreement, which grants Norway access to the EU’s single market, is also crucial for the country’s seafood and aquaculture industries. The EU remains Norway’s largest salmon market, and the agreement has ensured tariff-free access for exporters.
Industry leaders, including Seafood Norway CEO Geir Ove Ystmark, have warned that any move to weaken EEA ties could threaten market access for Norwegian seafood producers.
Norway’s Balancing Act with the EU
Norway is not part of the EU’s customs union and remains outside its common agricultural and fisheries policies, monetary union, trade policy, and foreign and security policy. However, in order to maintain its single market access and protect key industries, Norway has adopted thousands of EU regulations over decades—often with little or no say in their formulation.
With two-thirds of Norway’s exports going to the EU, Labour has stressed that maintaining EEA stability is essential, especially amid uncertainty in global trade. The party has pointed to U.S. tariff threats and the risk of a transatlantic trade war as further reasons to avoid straining relations with Brussels.
With Labour now in a weakened position and the Centre Party taking a more combative stance on European integration, businesses—including Norway’s salmon exporters—will be closely watching for signs of further turbulence in Oslo’s relationship with the EU.
