Norway urged to keep EU option open

OSLO, Norway -- Norway should keep her options open for European Union membership before 2005 despite a "No" vote in a 1994 referendum, the head of Norway's ruling Labour Party said on Thursday.

Thorbjoern Jagland, who is Norway's foreign minister, also urged a party congress to approve controversial government plans to privatise part of state oil firm Statoil.

"We are facing new international realities," he said in an opening speech to 300 delegates. The congress will vote on issues including Norway's ties to Europe and Statoil's fate on Sunday.

Jagland said Labour should not rule out reapplying for EU membership during the next parliament from 2001-05. Norway is the only nation to have negotiated and rejected EU membership -- and it has done so twice, in 1994 and 1972.

He noted that 12 nations, mostly ex-communist states in eastern Europe, were negotiating EU membership and that even west European nations long opposed to joining, like Switzerland and Iceland, were reconsidering.

"When Iceland thinks, we must dare to do so," he said.

Norway is a member of the European Free Trade Association (EFTA) with Iceland, Switzerland and Liechtenstein. A string of former EFTA members have joined the EU, most recently Sweden, Austria and Finland in 1995.

The Labour Party, which has just 65 seats of 165 in parliament, is likely to stop short of urging a new EU membership application. Labour's previous campaigns for a "Yes" to the EU have lost it votes in elections.

Norway, the top non-OPEC oil producer, pumps about 3.2 million barrels per day (bpd). That wealth partly explains why many of Norway's 4.5 million citizens are sceptical about joining the poorer EU club.

Jagland urged the party to loosen a state grip on oil and natural gas, saying it would help keep Norway competitive. Yet opinion polls show Norwegians are split over the wisdom of selling Statoil, which earns billions of dollars a year.

"The European gas market is being liberalised. And Norway is meeting new competitors from east and south," he said. "We must have a strong player able to sell Norwegian gas to the market. Statoil must get partners."

Labour leaders favour privatising up to a third of Statoil, mainly by letting the group team up with foreign firms. The party vote on Sunday is likely to swing a majority in parliament either for or against privatisation.

Jagland also said Statoil should be allowed to buy part of the state's direct financial interest (SDFI) in the oil and gas sector, which is separate from Statoil. SDFI oil, for instance, totals about 1.5 million bpd against 500,000 bpd for Statoil.

Reuters contributed to this report.

Norway
European Union

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.