Reuters news agency

POLITICS SPECIAL REPORTS | Thu May 8, 2014 | 4:08am EDT
End of oil boom threatens Norway's welfare model

In 2012, a new word entered the Norwegian lexicon - to "nave", or live off benefits from welfare agency NAV.

"Approximately 600,000 Norwegians ... who should be part of the labor force are outside the labor force, because of welfare, pension issues," says Siv Jensen, the finance minister.

Company executives and some government officials say Norway needs to limit wage increases to productivity, limit oil cost growth, cut taxes like neighbors have done and spend less of the oil money. Some say it should even depreciate its currency.

Kongsberg Automotive has only 5 percent of its workers left in Norway, having moved jobs to places like Mexico, China and the United States, and keeping only high-tech, automated functions at home. It says it is struggling with high labor costs and even problems such as excessive sick leave.