A turbulent day across Europe brought fresh political shifts, financial uncertainty, and a security scare in Germany.
Norway’s centre-left managed to cling to power after a fiercely contested election, France’s political deadlock forced out another prime minister, Boris Johnson faced an ethics probe over post-office dealings, and Berlin was hit by a major power outage linked to suspected arson.
Norway’s Labour holds power amid right-wing surge
Norway’s minority Labour-led coalition secured a second term in office after Monday’s election, even as the populist right made historic gains.
Prime Minister Jonas Gahr Stoere’s Labour and four smaller allies captured 87 seats in the 169-seat parliament, narrowly clearing the 85-seat threshold for a majority.
Stoere’s fragile victory ensures continuity but leaves him heavily reliant on smaller partners to push through major legislation, particularly on sensitive issues like tax hikes for the wealthy, oil exploration, and the management of Norway’s $2 trillion sovereign wealth fund.
Despite Labour’s success, the vote underscored a significant shift to the right.
The Progress Party, led by Sylvi Listhaug, more than doubled its representation to 48 seats, its best result ever, driven by voter discontent over high living costs and its campaign promise of steep tax cuts.
France faces another political collapse
France entered fresh political turmoil after Prime Minister Francois Bayrou and his centrist minority government were toppled in a confidence vote late Monday.
Bayrou’s 2026 budget plan—aimed at cutting the deficit from 5.8% of GDP to 4.6%—failed to gain traction, with 364 lawmakers voting against him versus just 194 in support in the confidence vote.
The ousting marks the latest in a string of political setbacks for President Emmanuel Macron as he struggles to steer France through deep fiscal challenges.
Bayrou is set to hand in his resignation on Tuesday, and a replacement government will be named in the coming days.
Markets reacted with muted concern: the CAC 40 closed 0.19% higher, though French bond yields ticked slightly up, reflecting investor nerves over prolonged instability.
Boris Johnson under ethics scrutiny
Back in Britain, Boris Johnson is facing renewed controversy after allegations surfaced that he profited from contacts made during his premiership.
According to leaked data reported by The Guardian, Johnson allegedly lobbied a senior Saudi official on behalf of a pitch later shared with Crown Prince Mohammed bin Salman and earned more than £200,000 following a meeting with Venezuelan President Nicolas Maduro.
The Liberal Democrats have called for Johnson to lose his allowance as a former prime minister.
The allegations have prompted an ethics probe that could add to pressure on the Conservative Party and further damage Johnson’s already chequered legacy.
Berlin blackout sparks security fears
In Germany, around 50,000 households in Berlin were left without electricity early Tuesday after a suspected arson attack on two pylons in the city’s southeast.
Police said they are not ruling out a political motive and have assigned a special unit to investigate.
Local media reports suggested possible links to Tesla’s recent announcement of a new development centre in the affected Treptow-Koepenick district.
The incident drew parallels to a 2024 attack by a far-left group that temporarily halted Tesla’s factory production outside Berlin.
Authorities said the connection could not be dismissed at this stage.
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