New recovery plan

Solberg lays out major crisis relief spending package

Erna Solberg

Photo: Stian Lysberg Solum / NTB scanpix
Prime Minister Erna Solberg laid out plans for a new relief package on Jan. 29.

The Local

The Norwegian government has announced plans to spend NOK 16 billion on pandemic crisis relief packages. 

The proposal includes funding for students and a recovery plan for the struggling airline Norwegian.

On Jan. 29, Prime Minister Erna Solberg presented the spending plan, which includes a number of focus areas.

Money will be spent on students in an effort to reduce the number of people who drop out of their studies or delay them, broadcaster NRK reports.

The government wants to provide an emergency loan of NOK 1.5 billion to the airline Norwegian. Oslo recently altered its course on bailing out the company after it presented a new recovery plan.

Compensation programs for companies and employees affected by the lockdown would be extended until June, and NOK 500 million would be put aside to assist municipalities that have incurred large costs because of the COVID-19 pandemic.

Money has also been budgeted for support for major public events likely to be affected by coronavirus restrictions through the end of June.

Funding is also provided for the continued operation of quarantine hotels until the end of June.

The package, which is funded largely by Norway’s sovereign wealth fund from the country’s oil riches, requires a parliamentary majority to be approved and must therefore also be ratified by other parties.

Several other parties—who can form a parliamentary majority—have presented an alternative relief spending plan, however. That potentially gives them the power to determine the shape of the final spending plan.

The proposal is scheduled to be taken up in the Norwegian parliament on Feb. 19

This article originally appeared in the Feb. 12, 2021, issue of The Norwegian American.

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The Local

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