Europe finds itself in turmoil following a tense confrontation between former U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy at the White House. Reports indicate that the Trump administration is considering halting all military aid to Ukraine, raising concerns across European nations.
Norway, home to the world’s largest sovereign wealth fund valued at €1.7 trillion, has benefited from an estimated €109 billion in war-related profits due to surging gas prices in 2022 and 2023. Despite its vast financial resources, Norway has contributed only €3.35 billion to Ukraine’s war effort. This figure was strongly criticized by leading Swedish and Danish newspaper editors, who described the amount as “pathetic” and “reprehensible.” In comparison, Sweden and Denmark have donated €5.41 billion and €8.05 billion, respectively.
Liberal Party leader Guri Melby emphasized the need for increased contributions, stating on Saturday, “Norway is one of the few countries that has large amounts of money readily available, and we must therefore multiply our support for Ukraine immediately.”
Norway’s former Conservative Prime Minister, Erna Solberg, echoed the call for swift action. She urged a significant and rapid increase in aid, adding, “The government can safely assume there is will in Parliament to give more.”
In response to growing pressure, the Liberal Party and the Socialist Left Party have requested an emergency parliamentary session. However, Euractiv reports that they are now awaiting a formal proposal from the government before proceeding further.
Meanwhile, Sylvi Listhaug, leader of the conservative Progress Party—Norway’s second-largest party according to recent polls—proposed increasing defense spending to 3% of GDP by 2030. At present, Norway allocates approximately 2% of its GDP to defense.
The leader of the Green Party, which currently polls at 2.7%, took an even more ambitious stance, suggesting that Norway should commit €85.5 billion to support Ukraine.
A spokesperson from Norway’s foreign ministry defended the country’s contributions, asserting, “Norway is among the largest donors to Ukraine. We have so far committed at least NOK 167 billion (€14.7 billion) in support until 2030.” The spokesperson also emphasized the importance of long-term investments, noting that both Ukraine and NATO allies value the predictability of Norway’s assistance. “For 2025, based on a cross-party agreement in Norway’s parliament, we have so far pledged and allocated 35 billion NOK.”
Norwegian Prime Minister Jonas Gahr Støre assured that additional support measures are forthcoming. “We will present a proposal to increase Ukraine support for parliament soon,” he said. Støre is also set to participate in a meeting of European leaders in London tomorrow.
Calls to Utilize Sovereign Wealth Fund
Since 2001, Norway has adhered to a fiscal rule limiting annual withdrawals from its sovereign wealth fund to 4%, later reduced to 3%. This policy was established under the leadership of Jens Stoltenberg’s first cabinet and has enjoyed broad political backing. Stoltenberg, who previously served as NATO’s Secretary General, now holds the position of Norway’s finance minister, coinciding with renewed scrutiny of the budget rule.
Amid escalating security concerns, discussions on using the sovereign wealth fund to bolster European defense and support Ukraine have gained traction in Norway. One proposal suggests reallocating approximately €300 billion of the fund’s €450 billion in liquid bonds into European defense bonds, with the stipulation that the funds be used exclusively to enhance Europe’s defense capabilities.
On Friday, Solberg reinforced the argument for increased spending, stating that Norway must leverage its oil wealth to strengthen its own defense. Some of her party’s high-ranking members had previously advocated for tighter regulations on how the fund’s money should be allocated. “Peace is more important than shortsightedness and inflation,” she asserted.
However, Stoltenberg cautioned against altering the budgetary framework, warning on February 7, “It is a dangerous idea to break the budgetary rule to give more money to Ukraine.”
Norway’s Expansive Financial Resources
Despite adhering to its fiscal guidelines, Norway remains in a strong financial position to expand its aid commitments.
Sveinung Rotevatn, deputy chair and financial policy lead for the Liberal Party, revealed that a proposal currently under discussion in Norway’s Parliament, the Storting, aims to increase Ukraine support by an additional 100 billion Norwegian kroner this year. If approved, this would elevate Norway’s financial assistance to Ukraine for 2025 from €3 billion to €11.5 billion.
Norway’s Foreign Ministry declined to specify further details on potential increases in aid, instead referring to Prime Minister Støre’s recent statement on the matter.
Rotevatn underscored the urgency of the situation, declaring, “It has become unequivocally clear that all of Europe must shift gears in our support and policy towards Ukraine and to ensure security in Europe.”
Minister of Foreign Affairs Espen Barth Eide reinforced this stance, asserting, “All other policies we pursue assume that we are a free and independent country and that we have a functioning international world order.”
As European nations grapple with the potential consequences of the U.S. withdrawing military support from Ukraine, Norway faces increasing pressure to step up its financial commitments. With vast sovereign wealth at its disposal, the question remains: Will Norway heed the calls for greater contributions, or will it continue to adhere to its longstanding fiscal restraints?