Five big news stories from Norway that you need to know about this week
A potential exit tax, a breakdown in wage talks, and Norway once again being ranked less happy than its neighbours are among the stories you need to know about this week.
Wage talks breakdown
Talks between the trade union group the United Federation of Trade Unions and the employer organisation the Federation of Norwegian Industry, broke down on Thursday and will head to mediation after Easter.
If mediation doesn't lead to an agreement between the two parties, a strike could occur as early as April 8th. Unions have threatened strikes this year and are adamant they will secure a real wage rise for members.
"Now we have been at it for four days. We have worked hard and have had four groups working. We summarised the work so far and see that if we are to move forward with a greater degree of progress, we need help. That's why we broke and invited the national mediator in," Jørn Eggum from the union group told the Norwegian newspaper VG.
The talks concerned the wages of "front-line" workers, who work in industries where Norwegian companies compete with foreign companies.
They usually act as a barometer for wage rises, as the wage rises for workers in this sector need to ensure that Norwegian businesses remain competitive, so they set the bar for other industries.
READ ALSO: Will this year's wage settlement negotiations lead to strikes after Easter?
Finance Minister outlines plans for exit tax
The government wants to implement a new exit tax for those who leave the country.
The new system will see the state close loopholes in the current exit tax rules, and emigrants will be charged on the gains they have made on shares while residing in Norway when moving assets overseas, public broadcaster NRK reports.
According to the proposal, anyone leaving the country starting from March 20th, 2024, would be required to pay taxes on these gains within a 12-year period.
This means the tax could potentially apply to some retroactively.
Under the proposed regulations, the tax rate would align with the dividend tax, which currently stands at 37.8 percent.
Expatriates will be presented with several options for fulfilling this tax obligation. They will be able to choose to pay the tax immediately, opt for interest-free instalments spread over a 12-year period, or defer payment until after the 12-year deadline, but with accrued interest.
READ ALSO: What we know so far about Norway's plans for an exit tax
Norway is behind the other Nordics in happiness rankings
Norway has been ranked the 7th happiest country in the world in the World Happiness Report.
However, the country appears to be on a downward trajectory when it comes to happiness, despite the country priding itself on its welfare state, work-life balance, and overall quality of life.
The country has slipped to 7th after last topping the table in 2017. It was also ranked as the least happy country in the Nordics, with the region once again dominating the top of the list.
The Norwegian Institute of Public Health (NIPH) publishes annual reports on happiness in Norway, which coincide with the release of the World Happiness Report.
The NIPH said in its report that the satisfaction with life and factors that affect the overall quality of life had slipped in Norway over the past five years.
The decline had been noted across several different demographics, according to the NIPH.
The gap in quality of life was greatest between those with money worries and those with healthy finances.
READ MORE: Why does Norway appear to be less happy than the other Nordics?
Interest rate cuts likely in September
After much debate among experts, Norway's central bank announced Thursday that it would likely cut the key policy rate in September.
"The interest rate path that we are presenting today indicates that interest rates will be cut for the first time during the autumn - most likely in September," Ida Wolden Bache, governor of the bank, said at a press conference on Thursday.
Earlier this week, we spoke to experts who expected autumn to be the time for interest rate cuts.
They also shared what would need to happen for cuts to take place.
The government unveils transport plan
Norway's government has caused controversy by excluding several large local transport projects from its national transport plan.
Large projects such as the Hordfast, the Ringeriksbanen railway line, the urban railway in Bergen and the E18 highway in Sandvika have all been excluded from the national transport plan.
"We don't have room for everything," Transport Minister Jon-Ivar Nygård said.
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Wage talks breakdown
Talks between the trade union group the United Federation of Trade Unions and the employer organisation the Federation of Norwegian Industry, broke down on Thursday and will head to mediation after Easter.
If mediation doesn't lead to an agreement between the two parties, a strike could occur as early as April 8th. Unions have threatened strikes this year and are adamant they will secure a real wage rise for members.
"Now we have been at it for four days. We have worked hard and have had four groups working. We summarised the work so far and see that if we are to move forward with a greater degree of progress, we need help. That's why we broke and invited the national mediator in," Jørn Eggum from the union group told the Norwegian newspaper VG.
The talks concerned the wages of "front-line" workers, who work in industries where Norwegian companies compete with foreign companies.
They usually act as a barometer for wage rises, as the wage rises for workers in this sector need to ensure that Norwegian businesses remain competitive, so they set the bar for other industries.
READ ALSO: Will this year's wage settlement negotiations lead to strikes after Easter?
Finance Minister outlines plans for exit tax
The government wants to implement a new exit tax for those who leave the country.
The new system will see the state close loopholes in the current exit tax rules, and emigrants will be charged on the gains they have made on shares while residing in Norway when moving assets overseas, public broadcaster NRK reports.
According to the proposal, anyone leaving the country starting from March 20th, 2024, would be required to pay taxes on these gains within a 12-year period.
This means the tax could potentially apply to some retroactively.
Under the proposed regulations, the tax rate would align with the dividend tax, which currently stands at 37.8 percent.
Expatriates will be presented with several options for fulfilling this tax obligation. They will be able to choose to pay the tax immediately, opt for interest-free instalments spread over a 12-year period, or defer payment until after the 12-year deadline, but with accrued interest.
READ ALSO: What we know so far about Norway's plans for an exit tax
Norway is behind the other Nordics in happiness rankings
Norway has been ranked the 7th happiest country in the world in the World Happiness Report.
However, the country appears to be on a downward trajectory when it comes to happiness, despite the country priding itself on its welfare state, work-life balance, and overall quality of life.
The country has slipped to 7th after last topping the table in 2017. It was also ranked as the least happy country in the Nordics, with the region once again dominating the top of the list.
The Norwegian Institute of Public Health (NIPH) publishes annual reports on happiness in Norway, which coincide with the release of the World Happiness Report.
The NIPH said in its report that the satisfaction with life and factors that affect the overall quality of life had slipped in Norway over the past five years.
The decline had been noted across several different demographics, according to the NIPH.
The gap in quality of life was greatest between those with money worries and those with healthy finances.
READ MORE: Why does Norway appear to be less happy than the other Nordics?
Interest rate cuts likely in September
After much debate among experts, Norway's central bank announced Thursday that it would likely cut the key policy rate in September.
"The interest rate path that we are presenting today indicates that interest rates will be cut for the first time during the autumn - most likely in September," Ida Wolden Bache, governor of the bank, said at a press conference on Thursday.
Earlier this week, we spoke to experts who expected autumn to be the time for interest rate cuts.
They also shared what would need to happen for cuts to take place.
The government unveils transport plan
Norway's government has caused controversy by excluding several large local transport projects from its national transport plan.
Large projects such as the Hordfast, the Ringeriksbanen railway line, the urban railway in Bergen and the E18 highway in Sandvika have all been excluded from the national transport plan.
"We don't have room for everything," Transport Minister Jon-Ivar Nygård said.
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