High-cost Norway worried by struggling Europe

Norway must restrict its spending of petro-dollars to ensure its high-cost economy does not become even more expensive at a time when its European neighbours face low growth and stagnant wages, top policy makers said Tuesday.

Central bank Governor Svein Gjedrem told a financial seminar in Norway’s “oil capital” Stavanger that the issue of costs had become more important during the global economic slump.

“Europe will be in big problems for many years and there is a lot more free capacity with our competitors,” Gjedrem said.

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Source: Reuters