Norway’s Left-Wing Coalition Triumphs in 2025 Election: Economic Issues and Investment Policies Take Center Stage

9 September 2025 Politics

Historic Victory for Norway’s Left-Wing Coalition

Norway’s Labour Prime Minister Jonas Gahr Støre has claimed victory in Monday’s legislative elections, with his party securing approximately 28 percent of votes, enabling him to remain in power with support from four other left-wing parties.

Initial projections show the five ‘red-green’ parties – Labour, the Centre Party, the Greens, the Socialist Left, and the Red party – securing 88 seats compared to 81 seats for the right-leaning parties.

Key Campaign Issues

Rising prices emerged as the primary concern among voters, with inflation squeezing household budgets despite Norway’s robust economy and immense oil wealth. The debates centered on how extensively the government should utilize oil revenues from the sovereign wealth fund to protect citizens from these economic pressures.

The wealth tax has been a particularly contentious issue. While Labour and its allies defend the tax as crucial for maintaining equality in one of the world’s most prosperous nations, the Conservatives and Progress Party campaigned on reducing or eliminating it, arguing it drives entrepreneurs and capital out of the country.

Sovereign Wealth Fund Controversy

Norway’s $2 trillion wealth fund, built on vast oil reserves, represents the single largest institutional investor globally. It holds stakes in approximately 9,000 companies and owns roughly 1.5 percent of all listed shares worldwide.

Looking Ahead

Final results are expected on Tuesday, likely followed by weeks of negotiations to build a coalition and agree on Cabinet positions before King Harald can swear in a new government.

Støre’s second term comes after a fiercely contested election, during which he survived internal party strife, Cabinet scandals, and an attempted leadership coup. His Labour Party has faced turbulent years marked by soaring inflation, rising interest rates, and ministerial resignations over various controversies.