Norway sails ahead on pay / News / The Foreigner

Norway sails ahead on pay. Norway is currently a land of milk and money, an economic oasis. But even though it’s “the only country in Europe where somebody dares to strike for more pay,” according to Aftenposten’s economic editor, Ola Storeng, there are some economists who fear it won’t last. Traditional Norwegian folklore says “Norwegians are born with skis on their feet”. It seems this extends to money too. Arne Hyttnes, Finance Norway’s (FNO) – a trade organisation for banks, insurance companies and other financial institutions – managing director believes Norwegians are economic optimists.

economy, pay, wages, norway, europe, increase, cut,



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Norway sails ahead on pay

Published on Thursday, 10th June, 2010 at 12:46 under the news category, by Michael Sandelson   .

Norway is currently a land of milk and money, an economic oasis. But even though it’s “the only country in Europe where somebody dares to strike for more pay,” according to Aftenposten’s economic editor, Ola Storeng, there are some economists who fear it won’t last.

Uncut sheet of 200-kroner notes
Uncut sheet of 200-kroner notes
Photo: Katrine Lunke/Norges Bank


Let the good times roll

Traditional Norwegian folklore says “Norwegians are born with skis on their feet”. It seems this extends to money too.

Arne Hyttnes, Finance Norway’s (FNO) – a trade organisation for banks, insurance companies and other financial institutions – managing director believes Norwegians are economic optimists.

“June’s Expectations Barometer shows Norway strengthening its position as a "different country" in relation to the Euro countries. Although we are affected by the turmoil in Europe, we’re still cautious optimists with strong beliefs in our personal finances,” he says.

Norsk Industri’s managing director Stein Lier-Hansen tells Aftenposten wage increases in neighbouring Sweden and Denmark are estimated to be almost two percent. Public and private pay levels here are up to three times higher.

Enjoy them whilst they last

According to Handelsbanken’s chief economist, Knut Anton Mork, a 3.5 percent wage increase is fairly low in Norwegian economic terms.

But it may not last forever. The severe pay cuts and freezes, as well as public-expenditure savings in other European countries have begun.

“It’s high in an international context. Wage growth will place a new strain on the Norwegian export industry,” says Mork.

Øystein Olsen, SSB’s (Statistics Norway) managing director, also warns of possible effects further down the line.

“Norway could be affected by what’s happening now in Europe over a longer period, not least in cases where wage growth amongst our most important trading partners becomes lower,” he says.

Ola Storeng puts it another way.

“2010’s settlement could remain as a beautiful memory from times past.”



Published on Thursday, 10th June, 2010 at 12:46 under the news category, by Michael Sandelson   .

This post has the following tags: economy, pay, wages, norway, europe, increase, cut, .





  
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