NEWS ANALYSIS: Jens Stoltenberg, the former NATO chief and Norwegian prime minister, is making a stunning if temporary return to top Norwegian politics. As finance minister in the Norwegian Labour Party’s new government, he can help rescue it and perhaps fend off a trade war as he assumes political responsibility for Norway’s enormous wealth: It may be the best defense against the unpredictable Donald Trump and Trump’s new hatchet man Elon Musk.
It’s a major turn of events for Norway, which “lost” Stoltenberg to NATO in 2014 after Stoltenberg himself had lost his bid for a third term as Norway’s prime minister. The man best known simply as “Jens” in Norway became so internationally popular and respected during his time at NATO that his term as secretary general was extended twice, first for a second term from 2018 and then again in 2022 when tensions were high after Russia’s invasion of Ukraine.
The second extension thwarted Stoltenberg’s own desire to be appointed as chief of Norway’s central bank in 2022. The appointment was not without controversy, since Labour under Støre had just won government power and questions arose over possible conflicts of interest. A probe was launched that ended when Stoltenberg agreed to stay on at NATO instead.
Now Stoltenberg, educated as an economist, will be in a position that politically ranks above the independent central bank, which in turn is in charge of Norway’s huge sovereign wealth fund known as the Oil Fund. It’s run through NBIM (Norges Bank Investment Management), led since 2020 by the wealthy Norwegian financier Nicolai Tangen. Tangen and Elon Musk have recently been in the news after the Oil Fund voted against Musk’s request for an enormous pay package. Musk wasn’t happy, but the ever-growing Oil Fund gives Norway clout as the largest sovereign wealth fund in the world.
If there’s one thing Musk and his new boss, the recently elected US President Donald Trump, respect, it’s money, and Norway has a lot of it. Stoltenberg is well-qualified to help manage it now as the country’s finance minister, and can well savour the fact that he’ll have clout in forming and presenting the next revised state budget. He’ll likely advocate another big increase in defense spending while still nurturing the social welfare state that’s at the core of Labour’s politics. And he’s simply a likeble guy himself, known for remembering names and faces and being informal while still commanding respect.
He’s also well-known to Trump, and still respected enough that he was invited to Trump’s inauguration for a new four-year term last week. Stoltenberg managed to get along with Trump during the US president’s first term from 2016-2014. Stoltenberg has also been able to offer advice on how to deal with Trump now, and can share that with Norwegian government colleagues on a daily basis. He said Tuesday afternoon that he and and his new team at the finance ministry “will do all we can to avoid any trade barriers against Norway.” His remarks come just as Trump has been threatening Canada, Mexico, China and Taiwan with huge tariffs to limit their imports to the US.
Many had thought Stoltenberg would find Norway too small after his 10 years at NATO, and he’s still due to assume the leadership of the Munich Security Conference this fall. In the meantime, though, he can help out his old friend Støre, who’s been struggling in his role as prime minister, and his Labour Party, which he grew up with (Stoltenberg’s late father Torvald was a government minister for Labour, too) and led himself for many years. Labour has fallen dramatically in public opinion polls, but last week’s divorce from the Center Party gives Labour new freedom to relaunch itself in the form of the first purely Labour government in 25 years.
Stoltenberg even managed to secure his long-time top aide, Sissel Kruse Larsen, as state secretary in the finance ministry. He intends to hit the ground running and claimed on Tuesday that he felt “deeply honoured” to not only be in charge of Norway’s finances in a new Labour government, but also to “be able to help my country in this critical phase,” with war in Europe and security issues high on the political agenda.
Stoltenberg stated in a press release that he had carefully considered Støre’s offer of the finance minister’s post just vacated by Center Party leader Trygve Slagsvold Vedum. Stoltenberg is expected to bring not only economic expertise to the post but also solid security and defense experience to the government as a whole, along with a huge international network of powerful connections. He’s already worked for years not only with Prime Minister Støre, but also with Foreign Minister Espen Barth Eide and is well-regarded in the Norwegian Parliament.
Reaction to Stoltenberg’s appointment was positive, with even the leader of the right-wing Progress Party Sylvi Listhaug saying it was “nice to wish Jens Stoltenberg welcome back to Norwegian politics. After three-and-a-half years Norway will finally get a competent finance minister,” a slam at the much-criticized Vedum even though she and Vedum share populistic tendencies not least in the energy market.
The leader of the far-left Reds Party, Marie Sneve Martinussen, called Stoltenberg’s appointment “interesting,” noting how Stoltenberg “earlier has managed things at a higher tax level for those with large fortunes and companies with large profits. That’s needed to finance redistribution (of wealth), dental reforms and other means of strengthening welfare in the country.”
Marit Arnstad of the Center Party said she thinks Stoltenberg “wants to help his party and contribute to the party getting a lift” among voters before the September election. “And I think that’s what Labour is hoping for, but putting him in such a position,” she told state broadcaster NRK.
Stoltenberg, now age 65, clarified that he will still take over as leader of the Munich Security Conference (MSC) in the autumn, and that he would remain “engaged in MSC and its many activities as much as time allows” in the meantime. He said he will return to MSC duties “and my other areas of responsibilty when my period (in the Norwegian government) is over.” That will be from early October, when the next four-year Parliamentary session opens after the September election. Business news service E24 reported that he is stepping down, however, as a leader of the elite international network known as Bilderberg.
Stoltenberg’s diplomat wife Ingrid Schulerud was the first to hand Stoltenberg a bouquet of red roses (the long-time symbol of the Labour Party) as all the new government minister posed outside the Royal Palace Tuesday morning. “He was supposed to slow down (after leaving NATO), but there’s never a boring day with him,” she told Norwegian Broadcasting (NRK). She hopes her husband’s government post will at least involve less traveling than his NATO post did.
“As for everyone else, this came up rather surprisingly,” Schulerud said. “I think he has a deep desire to contribute, when the world is as it is. He felt there was something he could contribute. I think it’s important to have that feeling when it involves what you’re doing with your life.
“This is what he wants to do right now, and that’s a good starting point.”
NewsinEnglish.no/Nina Berglund