The new king of Europe's richest oil country. But the Norwegian monarch has no access to oil billions
Norway found itself at the beginning of a new chapter in their history after the death of King Harald V. The seventy-eight-year-old heir to the throne became the new Norwegian king after his father's death and adopted the name Haakon VIII. This closes the more than 35-year-long era of Harald V, who was consistently very popular among Norwegians.
With the arrival of the new king, however, a question that has been appearing around the Norwegian monarchy for many years arises again. What is the royal family's financial situation actually like? And when Norway earned fabulous money from oil, did any of this wealth also reach the king? The answer will surprise you, because practically none at all.
King of an Oil Power Without an Oil Fund
We give Norway as an example of a country that managed to use its oil wealth wisely. In the second half of the 20th century, large oil deposits were discovered in the North Sea, and the country didn't spend all the money earned immediately. Instead, it began to set aside part of the income into a state fund, which was meant to ensure that future generations could also benefit from Norwegian natural wealth. This is how the Government Pension Fund Global was created, which most of us know simply as the Norwegian oil fund.
Today we are talking about one of the largest sovereign wealth funds in the world. The assets it manages exceed up to two trillion dollars and it owns stakes in thousands of companies around the world. According to estimates, the fund's value would correspond to approximately several hundred thousand dollars for each Norwegian citizen.
Many people therefore imagine that the Norwegian king sits on a huge treasure. In reality, however, the fund does not belong to the monarchy. It is the property of the Norwegian state and its operation is controlled by the government, parliament and central bank. The purpose of the fund is to protect the economy from fluctuations in oil prices.
The new King Haakon VIII. thus does not decide where hundreds of billions of dollars are invested or how the revenues will be used.
A more modest monarchy than many would expect
The Norwegian royal family differs from other oil monarchies, such as those in the Middle East. In a number of countries in the Persian Gulf, ruling dynasties are directly connected to revenues from oil extraction and have extensive private assets, while in Norway the king's role is representative. Real political power remains in the hands of democracy.
Although the royal family uses royal residences and draws funds from the state budget, its position is more modest than is customary elsewhere. Moderation and emphasis on closeness to ordinary citizens were among the reasons why Harald V maintained high popularity during his reign.
Norway is, after all, a country that prides itself on an egalitarian society. Ostentatious displays of wealth are not exactly received positively here. Therefore, the monarchy has long sought to act rather as a symbol of national unity than as a privileged elite.
Harald V Helped the Monarchy Survive
The late Harald V made history by helping to modernize the image of the Norwegian monarchy. In 1968, after a long struggle with conservative circles, he secured marriage to Sonja Haraldsen, a woman of non-noble origin. At the time, this was a significant breakthrough in the traditional rules of European royal families.
Similarly, the relationship of Crown Prince Haakon with Mette-Marit, who was a single mother before marriage, sparked discussions later. The Norwegian monarchy has maintained public support even in the 21st century mainly due to a more open approach to modern society.
Harald was perceived by people as a monarch who understood the changes in society and was able to unite people regardless of origin, religion or lifestyle. His speeches after the terrorist attacks of 2011 remain among the most quoted moments in modern Norwegian history to this day.
Haakon VIII Enters a Different Era
Now the new king assumes the throne at a time when European monarchies must defend themselves before the public. Support for the Norwegian monarchy remains fairly high, but in recent years it has been weakened by controversies connected with the broader royal family.
Haakon VIII faces the task of building on his father's legacy while convincing the younger generation of Norwegians that the monarchy has its place even in a modern state. An advantage for him is that he will not be associated with questions of power or great wealth. He has no say in how the country manages its oil wealth.
And perhaps this is one of the secrets of Norwegian success. Oil revenues belong to the state and its citizens, the monarchy remains primarily a symbol of the nation and tradition. The new King Haakon VIII thus ascends to the throne of one of the wealthiest countries on the planet, without having access to the treasury that many associate with the Norwegian crown.
Sources: author's text, norskpetroleum.cz, chathamhouse.org, nbiam.no, Reuters.com
