Participation of the Faroes in EU programmes

SUMMARY OF:

Agreement between the EU and the Faroes on the participation of the latter in EU programmes

Decision (EU) 2022/886 on the signing, on behalf of the European Union, and provisional application of the Agreement between the EU and the Faroes on the participation of the latter in EU programmes

WHAT IS THE AIM OF THE AGREEMENT AND DECISION?

The agreement sets out the terms and conditions for the participation of the Faroes in European Union (EU) programmes.
The protocol including the Faroes in the Horizon Europe programme, annexed to the agreement, sets out the specific programme-related terms and conditions for the participation of the Faroes in the programme.
The decision adopts the agreement on behalf of the EU, and the agreement is applied on a provisional basis pending the completion of the procedures necessary for it to apply fully.

KEY POINTS

The Faroes decided not to become a part of the European Communities when Denmark joined in 1973.
Formal relations between the EU and the Faroes are based on three bilateral agreements covering fisheries (1980), trade in goods (1997) and scientific and technological cooperation (2010) respectively. The EU treaties do not apply to the Faroes.
The Faroes became formally included in the seventh framework programme in 2010 and the Horizon 2020 association agreement (the predecessor to Horizon Europe) was signed in late 2014, with retroactive application as of 1 January 2014.

Umbrella agreement

The main text of the agreement sets out the conditions for the Faroes, comprehensively regulating Faroese participation across various EU programmes and activities that are open for their participation in accordance with the basic act establishing the EU's programmes.
It covers the terms and conditions for participation in EU programmes, and the association process (establishment of the participation).
It contains:
- provisions on the Faroes’ involvement in the governance of EU programmes or activities;
- rules for establishing the financial contribution of the Faroes to the EU's programmes;
- rules for the protection of the EU’s financial interests, including the powers exercised by the European Commission, European Court of Auditors, European Anti-Fraud Office and European Public Prosecutor’s Office;
- rules on enforcement of the Commission decisions on recovery and judgments of the Court of Justice of the European Union on the Faroes’ territory.
It sets up a joint committee with tasks which include monitoring and evaluation of the implementation of the agreement and examining how to improve and develop cooperation under the agreement.

This ‘umbrella agreement’ is meant to create a lasting legal basis for cooperation on EU programmes. It will continue to apply for several multiannual financial frameworks to come.

Horizon Europe protocol

The Horizon Europe protocol forms an integral part of the agreement. It was negotiated in parallel with the umbrella agreement and is annexed to it.
The specific terms and conditions for participation of the Faroes in any other particular EU programme or activity shall be laid down in additional protocols and be added to this agreement, if adopted by the joint committee.
The protocol allows Faroese participation in all parts of the programme except for the specific programme on defence research, as the detailed provisions for the EU funding to defence research projects are regulated by Regulation (EU) 2021/697.
Specific rules include:
- those covering the Faroes’ financial contribution to the programme and the payment methodology;
- a reciprocity clause, ensuring that researchers and companies established in the EU can take part in the Faroese research and innovation programmes that are equivalent to Horizon Europe;
- additional conditions of participation, such as:
  - participation in the activities of the Joint Research Centre and as an observer on the board of governors,
  - participation in the European Research Area and Innovation Committee,
  - the possibility to participate in the European Research Infrastructure Consortium.

DATE OF ENTRY INTO FORCE

The agreement has provisionally applied since 24 May 2022, pending the completion of the procedures necessary for its entry into force.

BACKGROUND

For further information, see:

International cooperation – Faroe Islands (European Commission).

MAIN DOCUMENTS

Agreement between the European Union, of the one part, and the Government of the Faroe Islands, of the other part, on the participation of the Faroe Islands in Union programmes (OJ L 154, 7.6.2022, pp. 4–22).

Council Decision (EU) 2022/886 of 16 May 2022 on the signing, on behalf of the Union, and provisional application of the Agreement between the European Union, of the one part, and the Government of the Faroe Islands, of the other part, on the participation of the Faroe Islands in Union programmes (OJ L 154, 7.6.2022, pp. 1–3).