Deal On Salmon Farm Tax Could Relieve Pressure On Beleaguered PM

Wires reporting that the gov't has reached a compromise agreement on the imposition of an aquaculture tax on the Norwegian salmon farming industry,. For months the Norwegian political system has been in gridlock due to disagreements between the minority centre-left gov't of PM Jonas Gahr Støre and the leftist Socialist Left Party, which often props up Støre's coalition. Given the important economic and political role of salmon farming in Norway, the issue has an outsized impact on political stability.

• The inability of Støre's gov't to reach a deal has contributed to a sharp decline in polling support for the PM's Labour Party and its coalition ally, the agrarian Centre Party. Former PM Erna Solberg's centre-right Conservatives lead in polls with around 30-32% support, compared to Labour's 17-19%.
• The Norwegian constitution does not allow for snap elections, meaning that a collapse in the current gov't would have resulted in the formation of a new coalition, or a hamstrung minority administration unable to pass legislation until the next election in 2025.
• Fish Farmer Magazine reports that the gov't '...has spent the past couple of days negotiating with [...] the Socialist Left (SV), which is openly hostile towards the salmon farming industry – but little progress was made. SV is demanding that the ground rent tax be raised to 48%, with stricter environmental controls..." The main opposition parties of the centre-right and right had backed a lower rate of taxation, and withdrew from talks last week according to IntraFish.