The fellow on the right is of course a nisse/tomte which is a mix between a gnome and an elf from the Northern parts of Europe, often associated with Christmas.
The fellow on the left is what the creatures looked like in the very first pictures made of them. Bigger, more animalistic, and having a massive boner. http://upload.wikimedia.org/wikipedia/commons/7/74/Tomte.jpg
Can't you just feel the holiday spirit?