(THIS ARTICLE IS MACHINE TRANSLATED by Google from Norwegian)
Enthusiasm for the SV peaks Kristin Halvorsen and Øystein Djupedal was very limited in terms of budget cooperation with the government when the two presented the party's alternative state budget on Thursday. In the back they had a questionnaire TV2 had conducted in SV's county, where a majority opened to create budget with the Right, KrF and the Left. Earlier, the young KrF parliamentary representatives Dagrun Eriksen (Vest-Agder) and Per Steinar Osmundnes (Sogn og Fjordane and leader in the KrFU) also spoke for SV as budget partner.
Now Halvorsen and Djupedal were concerned with lowering expectations that the SV should be the party that comes to an agreement with the bourgeois parties. The SV leader stated that something like this will only happen if a crisis situation arises – such as if the country lacks "both government and budget".
- But there is no grassroots uprising in SV to save Victor Norman, said Halvorsen, who emphasized that it was the Progress Party that installed the government, which decided that Kjell Magne Bondevik should be prime minister, and not Jan Petersen, and who has saved the government's budgets each time since insertion. Therefore, Halvorsen believes, the governing parties should clarify their relationship with the FRP, and together with them form a lasting alliance.
The alternative had to be that KrF broke out and changed sides in politics.
- But it would be madness if the Labor Party formed a government, or if the Labor Party and the Socialist People's Party did it together, without KrF changing sides, Halvorsen stated.
employment Package
The Labor Party leaks, which will present their alternative budget next week, indicate that the government parties must stretch billions to get them on the team. And the difference to SV is not small either: They want to move about NOK 16-17 billion, and also spend 2,3 billion more than the government for a separate employment package.
Øystein Djupedal was apparently not worried that the extra use of money would give new life to the allegations about SV as an outbid party or as a party that uses money that does not exist. Admittedly, SV has made a move where the budget is settled with the same balance as the government's – when the employment package is excluded. But Djupedal pointed out that SV has twice operated with a tighter budget than the government – and that in their time they warned against the first, expansive budget Per-Kristian Foss presented. Djupedal then also directly blamed the high interest rate and the krone exchange rate on Foss' budget.
This time, however, SV believes that good Keynesian policies indicate increased spending to reduce unemployment. With the help of NOK 2,3 billion, 20.000 unemployed persons will be put into work, including for upgrading school buildings and other public buildings. According to Djupedal, the investment will contribute to a 1,5 per cent rise in prices, against the government's estimated one per cent. That is, Djupedal pointed out, still one percentage point lower than the inflation target Norges Bank is pursuing. Thus, Djupedal believes, the investment will not lead to higher interest rates or a stronger krone.
With an unemployment rate of 110.000, it is still a long way down to Norwegian employment at its best – around 60.000 unemployed – but Djupedal emphasizes to Ny Tid that the increased investment will also be reflected in increased optimism in the Norwegian economy, and that it will therefore come more jobs in the private sector.
In total, that is, NOK 16-17 billion SV will move on in the budget. Among the big items is, as usual, the municipal economy, where the SV wants to spend just over five billion, and thus the employment package. The party will also reset the government's proposal for increased deductibles and introduce a maximum price of SFO of NOK 1.000. On the tax side, the party's own calculations show that people with an income below 300.000 will get relief, those between 300.000 and 500.000 will get small changes, while those over 500.000 will pay much more. The big cuts come on defense, cash support and some on oil investments. The unemployment benefit is also reduced, because fewer unemployed are invested.
Cooperation
At the press conference where the budget proposal was presented, there were many who had "suggestions" about how SV should behave in the budget battle in the future. Halvorsens and Djupedal, however, were reluctant to speculate on what might happen.
However, they rejected the idea that SV and the Labor Party should, so to speak, negotiate a budget together, and thus avoid that the two parties that may enter into a budget compromise with the government are exposed to criticism from the other. – But we talk together with the Labor Party, we have an open tone, Halvorsen said.
Very few believe, however, that it is SV that will form a majority together with the government. Most likely they will be able to reach an agreement with the FRP, alternatively the Labor Party will enter into a compromise to avoid forming a government themselves. While Jens Stoltenberg tries to hold the cards somewhat closer to his chest, Kristin Halvorsen was fully aware that a government from the left would be "crazy" without KrF changing sides.
However, Øystein Djupedal would not speculate on the question of whether a situation where "the country lacks both a government and a budget" could be precisely Aps and SV's chance to get KrF on its side. At the same time it is clear that such a crisis situation could be what breaks up the bourgeois bloc, brings together the Labor Party and the Socialist People's Party, and gives the two parties on the left their respective hands on the budget funnel.
