Norway is holding elections Monday as the government controlled by the center-left Labor party with Prime Minister Jonas Gahr Store faces a potential upset by the right-wing Progress Party led by Silvi Listhaug.

A person casts their ballot in the 2025 local elections at a polling station at Slattumhallen in Slattum, Norway on Monday. Photo by Gorm Kallestad/EPA UPI Norway's Labor Party leader Jonas Gahr Store votes in the 2025 parliamentary election at Uranienborg School in Oslo Monday. Photo by Javad Parsa/EPA UPI

Sept. 8 (UPI) -- Norway is holding elections Monday as the government controlled by the center-left Labor party with Prime Minister Jonas Gahr Store faces a potential upset by the right-wing Progress Party led by Silvi Listhaug.

Store has been prime minister since 2021, and the finance minister is the popular Jens Stoltenberg. But this election cycle has been contentious with voters concerned about the cost of living, wealth taxes and investment in Israel.

Norway has 4 million voters and is a founding member of NATO but isn't a member of the European Union. It shares a small 122-mile land border with Russia.

Store, 65, is campaigning for a second term in office. He took over after eight years of conservative rule ended in 2021.

But he is challenged by a bloc of two conservative parties: Listhaug's Progress Party and the Hoyre Party of former Prime Minister Erna Solberg.

A big issue in the campaign is the 1% wealth tax, which is what Norwegians pay if their assets are more than $175,000, though there are discounts relating to the value of the home. Hundreds of wealthy Norwegians have recently moved to Switzerland to avoid the high taxes.

...

Listhaug, 47, wants to remove the wealth tax and cut other taxes. Solberg, 67, and her Hoyre Party want to remove the tax on "working capital," like shares.

Labor wants neither, but it has promised to review taxation. Stoltenberg, who is a former NATO chief, has warned against creating a tax system that will create even more wealth inequality.

"It's truly been a whirlwind of an election with loads of unexpected twists and turns," Shazia Majid, a journalist and commentator for the Norwegian newspaper VG, told The Guardian. "Norwegians are waiting for the results with bated breath."

The class and gender divide has become a "mobilizing factor on both ends of the political spectrum," she said.

"For left-wing parties, the Gaza war has been an important theme, especially towards immigrant background Norwegians and young voters."

The Gaza issue is around Norway's sovereign wealth fund. Many left-wing voters want the fund to divest in many Israeli companies because of alleged human rights violations.

The fund has $1.9 trillion and has mostly blossomed because of the country's oil and gas resources. It's managed by the country's central bank, but it must follow ethics rules.