NORWAY: PM-Labour To Continue In Gov't Alone

PM Jonas Gahr Støre has confirmed that his centre-left Labour Party will continue in gov't alone following the withdrawal of the agrarian Centre Party (SP) from the governing coalition earlier today (see 'NORWAY: Centre Party To Leave Gov't Over EU Energy Directives-NRK', 1205GMT). State broadcaster NRK reports that Støre could end up being strengthened by the SP's withdrawal. 

• There has been speculation of a challenge to Støre from within his party amid poor opinion polling support lately with Labour Minister Tonje Brenna seen as a potential challenger. However, there will now be several vacant ministerial offices the PM can fill to bolster his internal standing ahead of the September general election.
• With just 48 lawmakers in the 169-member Storting (parliament), the gov't will need to work with opposition parties in order to pass legislation. This was already the case prior to the SP's withdrawal given that the coalition sat as a minority administration.
• The collapse of the gov't came over the implementation of the EU's fourth energy package, which Norway as a member of the European Economic Area (EEA) is also subject to. The SP has argued against the directives of the energy package. It claims that demands for closer energy integration have left Norway vulnerable to price volatility in Europe, pushing up electricity prices domestically, as well as giving too much power to Brussels.