Høyre's Tax Cuts Spark Defense Debate

Published: 2025-03-26

Norway's Høyre party has proposed a controversial plan to strengthen the country's defense by implementing tax cuts worth 30 billion kroner.

The plan includes reducing wealth taxes, particularly on working capital like stocks, while potentially increasing other taxes to balance the budget.

Critics argue that this approach risks leaving the defense budget underfunded, as it relies on the assumption that lower taxes will boost state revenues.

Høyre leader Erna Solberg defends the proposal, stating that a robust economy is essential to support military investments.

However, opponents, including Finance Minister Jens Stoltenberg, have called for a broader tax agreement to ensure sustainable funding for defense and public services.

The debate highlights the tension between economic priorities and national security in a time of heightened geopolitical uncertainty.