In the 1990s, Norway became Europe's largest oil producer and the world's second-largest oil exporter by 1995. Despite this economic strength, Norwegians rejected membership in the European Union in a 1994 referendum, choosing instead to join the European Economic Area and later the Schengen Area.
During this decade, large public investments were made, including the construction of a new National Hospital and the development of Oslo Airport, Gardermoen, which was connected to the capital by the countryâs first high-speed railway, the Gardermoen Line. The government also began privatizing major state-owned companies, including Statoil, Telenor, and Kongsberg.
Lillehammer hosted the 1994 Winter Olympics, showcasing Norway on the global stage. Meanwhile, the end of the Cold War led to reduced military activity and increased cooperation with Russia.