Norway's finance minister criticizes European allies over defense budgets

Norwegian Finance Minister Jens Stoltenberg has sharply criticized European countries that claim they cannot afford to increase their defense budgets. In an interview with Bloomberg in Oslo, Stoltenberg argued that if nations want to allocate more funds to defense, they must either cut other expenditures, raise taxes, or borrow money.

Stoltenberg pointed out the precarious financial situation of many European nations, noting that high debt levels are a significant concern. He stated that several NATO allies, including the United States, are now spending more on servicing their debt than on defense. He recalled that multiple U.S. presidents, from Barack Obama to Joe Biden and Donald Trump, have urged European countries to boost their defense spending, a sentiment Stoltenberg shares, emphasizing Europe's need to take greater responsibility for its own security.

Humorously suggesting that European nations could implement Nordic tax levels to generate additional funds, Stoltenberg shifted to discuss the Norwegian Oil Fund's ethics council. He defended the recent pause on the council's activities, which is undergoing a review of its ethical framework. Stoltenberg expressed confusion over the council's ethical reasoning, particularly after the exclusion of Caterpillar, a heavy machinery manufacturer, due to its equipment being used in the destruction of Palestinian property.

During a Q&A session, billionaire and former head of the ethics council Johan Andresen questioned Stoltenberg on balancing the fund's desire for maximum transparency with political sensitivities. Stoltenberg reiterated his commitment to transparency but clarified that the issue was not just about following ethical guidelines but also about the practical implications of investment decisions. He explained that previously, divesting from a company based on ethical recommendations meant publicly labeling it as a violator of fundamental ethical rules, using Caterpillar as a prime example.