In the 1980s, Norway underwent significant political and economic changes. The Conservative Party, led by Prime Minister Kåre Willoch, won the 1981 elections and implemented sweeping deregulation reforms, which included tax cuts, the introduction of private local radio stations, cable television, and the removal of restrictions on borrowing money. Foreigners were also permitted to buy Norwegian securities. However, in 1986, an economic crisis hit when foreign investors sold off Norwegian krone, leading to increased taxes and Willoch's resignation.
The Progress Party, positioned further to the right of the Conservatives, gained prominence during the late 1980s. Meanwhile, the oil industry’s high wages rendered low-skill manufacturing uncompetitive, prompting the Labor Party to close many subsidized public industrial companies. The decade also saw a rise in people claiming disability benefits, especially among older workers, and an increase in crime rates.
Infrastructure development progressed, with the opening of the subsea Vardø Tunnel in 1982 and the introduction of toll rings in major cities to fund road projects. However, Norway was hit by a banking crisis in the late 1980s, leading to the nationalization of major banks such as Den norske Bank and Christiania Bank. Norsk Data, a prominent minicomputer company, grew rapidly before going bankrupt by 1993. The decade ended with record-high unemployment, which carried into the early 1990s.