ABSTRACT
Since the early 1990s the Scandinavian welfare state model has been under attack, and particularly so the Swedish version of the model. Due to its oil revenues, prospects for the Norwegian welfare state have been regarded as brighter than those of its Swedish neighbour. Nevertheless, there are signs that the Norwegian version may face a difficult future as well. Changes which have taken place during the last decades have limited the field of political action in decisive ways, as pointed out by the Power and Democracy Study (Østerud et al. 2003). The most important of these are changes connected to internationalisation: international agreements — above all the EEA agreement — restrict the scope of action of public authorities. Increasing mobility of capital across borders has forced national authorities to pay more heed to the international finance market while at the same time the market is increasingly seen as a legitimate and effective mechanism for governing and regulating public as well as private activities.
