Norwegians began voting in a closely watched parliamentary election on Sunday, with opinion polls putting the centre-left Labour Party narrowly ahead but a centre-right bloc mounting a strong challenge that could reshape government policy on taxes, public spending and Norway’s international stance.

The contest pits incumbent Labour Prime Minister Jonas Gahr Støre, 65, who is seeking a second term, against a centre-right alliance that includes the right-wing populist Progress Party led by Sylvi Listhaug, 47, and the Conservative Party of former prime minister Erna Solberg, 67. With just over four million registered voters, Norway uses proportional representation across 19 constituencies, and no single party is expected to win an outright majority in the 169-seat Storting.

The campaign has been shaped by both international and domestic issues. The wars in Gaza and Ukraine and international disputes such as US trade tariffs featured early in the race, but in the campaign’s final stretch voters have focused on the rising cost of living, public services and inequality. "Public spending, school and infrastructure, railway infrastructure and road construction, those kinds of things," said one voter, Andreas, explaining what he considered the key issues.

Taxation — and in particular a 1% wealth tax — emerged as a central battleground. Norwegians pay the levy on assets above 1.76 million kroner (about £130,000 or $175,000), with discounts that cover roughly three-quarters of the value of a primary residence. Critics say the tax has helped drive wealthy Norwegians to relocate, often to Switzerland. Listhaug has called for abolishing the wealth tax and cutting other levies, while Solberg’s Conservatives propose exempting "working capital" such as shares. Labour has resisted wholesale abolition but has promised a wide-ranging review of the tax system.

Jens Stoltenberg, the former Nato secretary-general now tasked with finance matters for Labour, has warned against reshaping tax rules in ways that would let the wealthiest pay little or no tax. Pollsters and political commentators have credited a so-called "Stoltenberg effect" with bolstering Labour’s standing ahead of the vote.

Sylvi Listhaug and Jonas Gahr Støre at Arendal festival debate

Foreign policy and ethical investing have also been salient. Norway, a founding NATO member that borders Russia in the Arctic and participates in the European Economic Area and the Schengen zone while remaining outside the European Union, has seen its sovereign wealth fund move to divest holdings in nearly half of its Israeli investments amid allegations of rights violations related to the Gaza war. The Government Pension Fund Global, worth about $1.9 trillion and managed by Norway’s central bank under ethical guidelines, has placed the country’s financial and political establishment under strain; its chief executive, Nicolai Tangen, described the developments as "my worst-ever crisis." The decisions have intensified scrutiny of how foreign conflicts influence domestic politics.

The EU membership question has been largely absent from the campaign. Historical resistance to joining the EU remains strong in Norway, and most parties have avoided reopening the debate for fear of alienating voters. Solberg’s Conservatives list promoting EU membership as a policy but say any move would require a referendum. Labour officials, including Foreign Minister Espen Barth Eide, have described relations with the EU as a pragmatic, ongoing arrangement and said a renewed membership push is not on the immediate agenda.

Televised debates and the annual political festival in Arendal brought national attention to both policy differences and personality clashes. Støre has campaigned on continuity and social policy, while the centre-right bloc has presented competing visions for tax relief and economic growth. Internal disagreements within the centre-right coalition — notably over who would become prime minister if they win — have complicated the bloc’s message. Solberg has publicly resisted suggestions that Listhaug, whose Progress Party has grown in popularity, should take precedence as leader of a potential new government.

Norway’s political history of minority governments and coalition-building means the election’s outcome will depend on post-election horse-trading as much as on raw vote totals. A majority requires 85 seats in the Storting, and analysts say the result could well be a fragmented parliament that will take time to translate into a stable governing coalition. If no clear majority emerges when votes are counted on Monday evening, negotiations between parties will determine the next administration.

Voter interest appeared high in the run-up to polling day, with many Norwegians describing the choice as a test of priorities between redistribution and tax relief, and between a steady foreign policy stance and a more market-oriented economic approach. As ballots are tallied, Norway’s small electorate will decide whether to maintain the Labour-led course set in 2021 or shift to a centre-right government that promises lower taxes and different spending priorities.

Campaigners on the campaign trail ahead of the vote