Norwegian government split over EU service directive

NorwayOslo - Norway was set to introduce a European Union directive aimed at liberalising services despite a split in the red-green coalition, Prime Minister Jens Stoltenberg said Thursday.

"The service directive is good and important for Norway and will contribute to equal, secure and predictable rules for Norwegian companies," Stoltenberg told reporters.

Although Norway is not a member of the EU, it cooperates closely with the 27-nation bloc as member of the European Economic Area (EEA).

Stoltenberg's Labour Party, the main force in the coalition, backs adopting the directive while coalition partners, the Centre Party and Socialist Left Party oppose it.

Relying on votes from opposition parties the Labour Party seemed certain to approve the directive due to take effect in 2010.

Finance Minister Kristin Halvorsen, leader of the Socialist Left party, said the government could cope with the disagreement over the directive, remarks that were echoed by Centre Party leader Liv Signe Navarsete.

"The Socialist Left Party had wanted to use the EEA treaty's provisions to reserve ourselves, but we did not get the Labour Party to accept that," Halvorsen said at a party meeting, Norwegian news agency NTB reported.

"Therefore we have to reserve ourselves in cabinet," she added, saying she had not considered pulling out of the coalition.

The finance minister said she feared the directive could undermine wages and labour contracts, although Stoltenberg said he was confident this would not occur.

Norwegian voters opposed joining the EU in referendums held 1972 and 1994. (dpa)

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