Norway's socialist
finance minister
praises Bush
 Socialist Left leader Kristin Halvorsen complimented US President Bush for showing "good social-democratic" tendencies this week. PHOTO: KNUT FALCH/SCANPIX |
Halvorsen's party has a history of opposing American policies, not least those of Republican administrations. The one led by Bush over the past eight years has often been criticized by both Halvorsen and her party.
As finance minister in a sometimes shakey coalition government, though, Halvorsen has had to make a lot of compromises and, for example, go along with policies tied to Norway's membership in NATO (which SV has traditionally opposed as well). Now Halvorsen is even lauding the Bush administration's bailout of mortgage giants Fannie Mae and Freddie Mac.
She told newspaper Aftenposten that Bush showed "good social-democratic" and "red-green" tendencies when his administration decided to take over the two institutions in an effort to stem losses and calm financial markets.
The bailout has direct consequences for Norway's so-called "oil fund," which had suffered losses on its investment in Fannie Mae and Freddie Mac. Bonds worth NOK 61 billion are now viewed as secured, while NOK 250 million in share value has been lost. That's a "good deal," contends Halvorsen's state secretary in the finance ministry Roger Schjerva, also of SV.
Halvorsen also compared the US bailout to Norway's own bank bailout of the early 1990s. Shareholders lost out, but the banks were saved.
Nina Berglund
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