Finance Minister Jens Stoltenberg has previously given a clear message that it is out of the question for Norway to contribute to getting an EU loan to Ukraine in place.
The Labour Party joined forces with the Progress Party and the Centre Party and voted down a proposal that Norway contribute as a guarantor for an EU loan to Ukraine.
Following an initiative from Liberal Party leader Guri Melby, the Conservative Party, Green Party, Christian Democratic Party and Liberal Party joined forces on a proposal that Norway should act as a co-guarantor for the giant loan to Ukraine.
The Labour Party was thus on the verge of collapse. But their no vote decided the matter when the Storting voted on the proposal on Thursday.
Best Opportunity
Left-wing leader Guri Melby finds it difficult to understand that the Labour Party has formed a majority with the Progress Party and the Socialist Party to say no to Norway being a co-guarantor for a large EU loan to Ukraine.
“Norway has a unique opportunity to contribute in a way that other countries do not. It is difficult to understand why the government will not even consider acting as a co-guarantor for a European loan scheme when it could have helped trigger far greater support from other countries as well,” she tells NTB.
Melby points out that the situation in Ukraine is critical and the voting is hard to understand.
Package Of 210 Billion Euros
The EU Commission is working to put in place an economic package for Ukraine totaling 210 billion euros until 2030.
The lion’s share of this is a so-called repair loan totaling 165 billion euros, close to 2,000 billion kroner at today’s exchange rate, financed by Russian funds frozen in European banks.
The loan will apparently be the top item at the EU summit next week.
Most of the money, 140 billion euros, is in the Belgian financial institution Euroclear, while 25 billion is in various private banks in Europe.
90 billion euros have been set aside to cover Ukraine’s needs in 2026 and 2027.
Fearing Russian Reactions
The plan is for Ukraine to repay the loan when the conflict is over, and if Russia pays reparations. However, this is considered highly unlikely. The reparations loan is thus seen as an advance on the reparations.
But Belgium fears Russian reprisals and has so far put its foot down on the plans. They demand that all EU countries join and guarantee the loan.
But many EU countries, which are already struggling with sky-high debt and low creditworthiness, are feeling the pinch.
Ukraine, for its part, is in danger of running out of money in a few months. The loss of American support has left a large hole that EU countries are unable to fill, the Kiel Institute warned earlier this week.
Idea Shot Down
Two Norwegian economists first launched the idea that Norway could act as a co-guarantor for the Ukraine loan to ease the burden on the EU.
But the idea was quickly shot down by both Prime Minister Jonas Gahr Støre and Finance Minister Jens Stoltenberg.
“For Norway, it is not appropriate to join a system of loan guarantees for Ukraine support in the EU,” Stoltenberg told NTB in November.
Source: Nettavisen (in Norwegian)