Norwegians began voting Sunday in a closely fought parliamentary election that will determine whether Prime Minister Jonas Gahr Støre’s Labour-led government remains in office or a centre-right bloc takes power.

Opinion polls in the run-up to the two-day vote put Labour ahead, buoyed in part by the appointment of former NATO secretary-general Jens Stoltenberg to a key finance role, but analysts and party strategists said the fragmented party landscape and coalition arithmetic make outcomes uncertain. Nearly four million eligible voters will decide control of the 169-seat Storting, where a majority requires 85 seats and no single party can govern alone.

Domestic concerns that shaped the campaign included rising living costs and inequality, with voters pointing to public spending, schools and transport infrastructure as key priorities. At the annual Arendal political festival in August — a focal point in the run-up to the election — issues such as school funding, railway and road construction dominated televised debates and town-hall exchanges.

Foreign policy and global events also influenced the campaign. Norway is a founding NATO member with an Arctic border with Russia and access to the EU single market through the European Economic Area, and voters heard repeated references to the wars in Ukraine and Gaza. Recent actions by Norway’s sovereign wealth fund — the world’s largest — to divest from almost half of its Israeli holdings over alleged rights violations intensified political scrutiny and became a rallying point for some parties. The fund, valued at about $1.9 trillion, is managed by the central bank under ethical guidelines; its chief executive, Nicolai Tangen, has described the decisions as his "worst-ever crisis."

Crowd at Arendal festival

A central domestic flashpoint in the campaign was the future of Norway’s 1 percent wealth tax, applied to net assets above 1.76 million Norwegian kroner (roughly £130,000 or $175,000), with discounts that reduce the taxable value of main homes. Populist Progress Party leader Sylvi Listhaug has called for abolishing the tax and cutting other levies, while former prime minister Erna Solberg’s Conservative Høyre party has proposed exempting "working capital," such as shares. Labour has rejected abolition but pledged a broad tax review and warned against reforms that would erode revenues from the wealthiest.

Hundreds of affluent Norwegians have emigrated to Switzerland in recent years, anecdotally citing high domestic taxes. "Public spending, school and infrastructure, railway infrastructure and road construction, those kinds of things," said a voter identified as Andreas, explaining his priorities ahead of the ballot this weekend.

The centre-right vote is split, complicating any straightforward transfer of power. The bloc includes Listhaug’s right-wing populist Progress Party and Solberg’s Conservatives; both have seen rising support, but party leaders differ over who would lead a new government if the coalition wins. Solberg, who served as prime minister for eight years until 2021, has resisted the idea that the populist Listhaug could take the premiership ahead of her, saying voters view Listhaug as too polarising.

Foreign policy questions have featured throughout the campaign but have not produced consensus on Norway’s broader European alignment. Norway is not an EU member, though it participates in the EU single market through the EEA and is part of the Schengen zone. Calls for reopening debate on EU membership have been muted, and party leaders from across the spectrum said a formal referendum would be required for such a shift. "There's still a massive 'no vote' in Norway. And so the voters are not there," TV debate moderator Fredrik Solvang said of EU accession prospects.

Labour led a minority government with the Centre Party after the last election, but that coalition collapsed in January following disputes over EU energy policy. The collapse underscored the volatility of minority arrangements in Norway’s proportional system and raised the prospect that Monday night’s count could produce no clear majority. Analysts said that outcome would likely trigger extended negotiations to form a governing coalition or, alternatively, a continuation of minority rule.

Leaders answer questions during the Arendal debate

Campaigning also touched on social issues that reflected ideological splits within blocs. During a debate segment in Arendal, leaders from the centre-right discussed school policies such as whether to display Pride flags or EU flags in classrooms, illustrating how cultural as well as economic topics shaped voter choices. Voters with ties to other European countries said global developments were influencing their view of Norwegian politics. "I think Norwegian politics kind of acts as if it's on a separate island to the rest of the world and isn't affected, but clearly it is," said Christina Stuyck, who holds Norwegian and Spanish nationality.

Turnout, distribution of votes across Norway’s 19 electoral constituencies and the performance of smaller parties will determine whether Labour can hold power or the centre-right can cobble together a majority. If neither side reaches 85 seats, negotiations among parties will be required, and analysts expect those talks to focus on taxation, energy policy and Norway’s approach to international conflicts and trade.

The vote carries implications beyond Norway’s borders because of the country’s energy resources, its role in NATO and stewardship of the sovereign wealth fund. As ballots are counted on Monday evening, officials and party leaders are preparing for rapid political bargaining in the event of a hung parliament, with Norway’s proportional system historically producing minority governments and coalition deals rather than single-party rule.

Campaigning in the lead-up to the vote

Election officials said results will be updated as counts from municipalities are reported. International observers and analysts will watch closely for shifts in policy direction on taxation, energy and foreign affairs depending on who ultimately governs, and for how effectively any new or continuing coalition navigates the competing priorities that have defined the campaign.