OSLO - Norwegian Labour leader Jens Stoltenberg, triumphant after his "Red-Green" alliance ousted the centre-right government in an election, promised on Tuesday to spend more of the nation's oil bonanza on welfare.
"We will use Norway's great opportunities and income on the common good -- jobs for all, good schools, security and care for the elderly," Stoltenberg, 46, told reporters of Monday's win.
Stoltenberg and his alliance beat the tax-cutting government of Prime Minister Kjell Magne Bondevik even though the economy is booming and U.N. surveys have rated Norway as the best place in the world to live every year since 2001.
A trained economist who was Norway's youngest prime minister from 2000-01, Stoltenberg said Bondevik's tax cuts had betrayed Nordic traditions of equality.
Stoltenberg shared a victory cake in parliament with leaders of his allies, the Socialist Left and Centre parties, and predicted a slog to work out joint policies. His partners have promised far higher spending of oil cash than Labour.
"There are disagreements and it will be tough," he said. Formal talks on forming a government would start on Sept. 26 and probably last until mid-October, he said.
Stoltenberg said a key area of disagreement was whether to allow exploration for oil and gas in the Arctic Barents Sea. Labour is in favour but the two other parties fear any spills could damage the fish stocks and the environment.
And he cautioned that overspending could risk economic overheating in Norway, the world's number three oil exporter behind Saudi Arabia and Russia. He plans to raise taxes by 4 billion crowns ($627.9 million).
Unlike most nations, Norway has no trouble raising cash to fulfil campaign pledges. A fund saving surplus money for future generations recently reached $190 billion, or about $41,000 for each of Norway's 4.6 million citizens.
PM Phones King
Bondevik, a 58-year-old Lutheran priest, telephoned King Harald to admit defeat and say that he planned to step down after presenting a draft 2006 budget on Oct. 14.
With 99.5 percent of votes counted, the "Red-Green" alliance had 87 seats in the 169-seat parliament with 82 for Bondevik's coalition of his Christian People's Party, the Conservatives and the Liberals and an informal ally, the populist Progress Party.
Sometimes likened to France's National Front or Austria's Freedom Party, Progress will be Norway's second biggest political grouping with 37 seats after Labour with 61.
Bondevik's alliance and Progress won more votes than the "Red-Green" coalition -- about 1.27 million to 1.25 million. Election rules give more weight to voters in rural districts, like the Arctic north or along the western fjords.
"The Labour party rebuilt this country after the war and they govern for the good of the people," 20-year-old Veronica Nielsen said as she set up a fruit and vegetable store.
Stoltenberg said his party expected more say over policies because it would be far bigger than the Socialists, with just 15 seats in parliament, and the Centre party, with 11. The Socialists have never been in government.
The Socialists favour a six-hour working day, want to build hundreds of kindergartens and favour buying back shares in part-privatised former state monopolies such as Statoil. And their programme denounces the United States as "the biggest threat to world peace".
Business leaders expressed fears of higher taxes.
"Compared to the rest of Europe we're going in the wrong direction," Finn Bergesen, head of the main employers' organisation, told Reuters. "We are already among those with the highest tax burden."
Still, markets had a muted reaction. The Oslo bourse fell 0.8 percent, in line with a European trend. The Norwegian crown was at 7.81 per euro Additional reporting by John Acher and James Kilner Norwegian Labour leader Jens Stoltenberg, triumphant after his "Red-Green" alliance ousted the centre-right government in an election, promised on Tuesday to spend more of the nation's oil bonanza on welfare. "We will use Norway's great opportunities and income on the common good -- jobs for all, good schools, security and care for the elderly," Stoltenberg, 46, told reporters of Monday's win. Stoltenberg and his alliance beat the tax-cutting government of Prime Minister Kjell Magne Bondevik even though the economy is booming and U.N. surveys have rated Norway as the best place in the world to live every year since 2001. A trained economist who was Norway's youngest prime minister from 2000-01, Stoltenberg said Bondevik's tax cuts had betrayed Nordic traditions of equality. Stoltenberg shared a victory cake in parliament with leaders of his allies, the Socialist Left and Centre parties, and predicted a slog to work out joint policies. His partners have promised far higher spending of oil cash than Labour. "There are disagreements and it will be tough," he said. Formal talks on forming a government would start on Sept. 26 and probably last until mid-October, he said. Stoltenberg said a key area of disagreement was whether to allow exploration for oil and gas in the Arctic Barents Sea. Labour is in favour but the two other parties fear any spills could damage the fish stocks and the environment.
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