Norway’s Conservative Party pauses controversial tax cuts over EU state aid concerns
The Conservative Party (Høyre) will suspend four planned cuts to CO₂ taxes, set to take effect on Friday, after warnings that the measures may violate EU state aid rules, the party announced on Wednesday.
In a statement, Conservative MP Nikolai Astrup said the decision follows a failure by Finance Minister Jens Stoltenberg (Labour) to ensure the tax cuts complied with legal requirements. “It is remarkable that the finance minister has not contacted parliamentary parties to implement the Storting’s [Norway’s parliament] decisions in a lawful manner,” Astrup said. “Since the finance minister has abdicated responsibility, the Conservative Party must act.”
The move has drawn sharp criticism from coalition partners. The Progress Party (FrP) accused the Conservatives of “wavering” on tax policy. “We are deeply disappointed that the Conservative Party is now backtracking on these essential fuel tax cuts,” said Sylvi Listhaug, FrP’s parliamentary leader. She argued the decision creates further uncertainty for businesses and called for broader tax relief to ensure Norway remains within EU regulatory limits.
The Centre Party (Sp) condemned the pause as a “betrayal” of Norwegian industry and workers. “It’s unbelievable that when Norwegian construction and transport companies are on the brink of bankruptcy, the Conservative Party prioritises EU rules over Norwegian jobs,” said party leader Trygve Slagsvold Vedum.
The disputed tax cuts, approved by parliament before Easter with support from the Conservatives, FrP, Centre Party, and Christian Democrats, include reductions in diesel and business fuel taxes. Stoltenberg had previously warned that four of the five remaining cuts, scheduled for May 1, likely breach the EEA Agreement. While the finance minister acknowledged parliament’s authority to set taxes, he stated his department would have no choice but to enforce the measures.
The Conservatives countered that Stoltenberg failed to clearly communicate the legal risks during pre-Easter debates and did not request additional time to resolve the issue.