Norwegian government resolves budget crisis: reports

Norway's right-wing government narrowly avoided collapse Saturday after a last-minute deal was agreed in negotiations for the 2017 budget, which had threatened to bring down the ruling coalition, media reports said.

Prime Minister Erna Solberg's minority government had until Monday to secure majority support from its centrist allies in parliament, the Christian Democrats and Liberals, to pass its 2017 finance bill.

But a solution was found after talks stretched into the weekend, according to leading daily Aftenposten public broadcaster NRK and the tabloid VG, citing sources close to the government.

Saturday's compromise included an extra 6 billion kroner (670 million euros) for climate and environmental measures, family policy, education and research and rail transport, according to Norwegian media.

Details of the measures were due to be confirmed at a press conference later in the day.

The talks had been thrown into crisis on Tuesday when the Liberal Party announced its withdrawal from the budget negotiations, unhappy with a lack of measures to combat climate change.

In its draft budget, the government had proposed to raise the price of diesel by 0.35 kroner (4 euro cents) per litre and that of petrol by 0.15 kroner per litre, while at the same time giving motorists other tax breaks. Presented as non-negotiable, the proposal had fuelled anger among the Liberals.

Without a last-minute compromise, the government would have been forced to call a vote of confidence in parliament. A defeat would have triggered negotiations to form a new government, potentially led by the opposition Labour party.

The Norwegian constitution does not allow for early elections, with the next legislative vote scheduled for September 11, 2017.