EUROPEAN COMMISSION

Brussels, 4.3.2024

COM(2024) 97 final

2024/0052(NLE)

Proposal for a

COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 - April 2028, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 - April 2028, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and the Additional Protocol to the Agreement between the European Economic Community and Iceland

(Text with EEA relevance)

EXPLANATORY MEMORANDUM

The Agreement on the European Economic Area (hereinafter referred to as ‘the EEA Agreement’) allows Iceland, Liechtenstein and Norway (‘the EEA EFTA States’) to participate fully in the single market. In conjunction with this, since the entry into force of the Agreement in 1994, these three countries have also contributed to the alleviation of economic and social disparities in the European Economic Area on the basis of Article 115 of the Agreement. In addition, Norway has contributed through a separate Norwegian financial mechanism. The most recent financial mechanisms expired on 30 April 2021. 1

In view of the continued need to alleviate economic and social disparities within the European Economic Area, on 20 May 2021 the Council authorised the Commission to open negotiations with Iceland, Liechtenstein and Norway on an agreement on the future financial contributions to be made by the EEA EFTA States towards improving economic and social cohesion in the European Economic Area. 2 Formal negotiations were opened on 16 June 2022. In parallel, but independently of the negotiations on the financial mechanisms, a review of the EU-Iceland and EU-Norway fish trade protocols was opened on the basis of the revision clauses of the additional protocols to the Free Trade Agreements with Iceland and Norway. 3  

The negotiations were concluded at negotiators’ level with the initialling on 30 November 2023 of:

·the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 – April 2028;

·the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 – April 2028;

·the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway; and

·the Additional Protocol to the Agreement between the European Economic Community and Iceland.

The attached proposal relates to the conclusion of the EEA Financial Mechanism Agreement, the Norway Agreement, the Norway Protocol and the Iceland Protocol.

The EEA Financial Mechanism Agreement and the Norway Agreement will together provide a financial contribution of the EEA EFTA States to economic and social cohesion in the EEA of EUR 3.268 billion for the period May 2021 – April 2028. The outcome reflects the negotiating directives issued by the Council, which requested a) an increase in the financial contributions from the EEA EFTA States; b) the application of the EU Cohesion Fund distribution key; c) the alignment of the duration of the new financial mechanisms with the EU Cohesion policy instruments (2021-2027); d) the inclusion of green objectives among the priorities supported; and e) more efficient implementation processes for the future mechanisms.

In parallel, the bilateral fish trade protocols with Iceland and Norway have also been reviewed. New concessions are granted for the period May 2021 - April 2028. The concessions are built on the previous protocols for the 2014-2021 period and are commensurate with the amount of the financial contributions. Flexibility is provided concerning the carry-over of unexhausted quotas at the end of the period. Norway will also renew the fish transit arrangement for EU vessels landing catches in Norway.

The Agreements and Protocols are to be applied provisionally as of the dates stipulated in their Articles, pending completion of the relevant procedures for their ratification or conclusion and entry into force.

As it is common practice when modifying specific elements of existing international agreements, it is proposed to use the relevant articles of the Treaty on the Functioning of the European Union as the legal basis for the draft decisions, namely Article 175 TFEU, third paragraph for the agreements on the financial contributions to economic and social cohesion and Article 207 TFEU for the fish trade protocols. Furthermore, Article 218(6)(a) TFEU is referred to as the legal basis for the conclusion of these agreements.

2024/0052 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 - April 2028, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 - April 2028, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and the Additional Protocol to the Agreement between the European Economic Community and Iceland

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 175, third subparagraph and 207, in conjunction with Article 218(6)(a) thereof,

Having regard to the proposal from the European Commission,

Having regard to the consent of the European Parliament,

Whereas:

(1)There remains a need to alleviate economic and social disparities within the European Economic Area, and a new mechanism for the financial contributions of the EEA EFTA States and a new Norwegian financial mechanism should therefore be established.

(2)On 20 May 2021, the Council authorised the Commission to open negotiations with Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an agreement on the future financial contributions of the EEA EFTA States to economic and social cohesion in the European Economic Area.

(3)The EEA Financial Mechanism (May 2021 – April 2028) and the Norwegian Financial Mechanism (May 2021 – April 2028) will contribute to the reduction of economic and social disparities in the European Economic Area and to the strengthening of relations between the EEA EFTA States and the Beneficiary States.

(4)The special provisions on imports into the EU of certain fish and fisheries products originating in Iceland and Norway, set out in the Additional Protocols to their respective Free Trade Agreements with the European Economic Community, expired on 30 April 2021 and have been reviewed in accordance with Article 1 of these Protocols.

(5)The Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 – April 2028, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 – April 2028, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and the Additional Protocol to the Agreement between the European Economic Community and Iceland were signed in Brussels on (....). The said Agreements and Protocols should be approved on behalf of the European Union,

HAS ADOPTED THIS DECISION:

Article 1

The Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 – April 2028, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 – April 2028, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and the Additional Protocol to the Agreement between the European Economic Community and Iceland are hereby approved on behalf of the European Union.

The texts of the Agreements and the Protocols are attached to this Decision.

Article 2

The President of the Council shall designate the person empowered to deposit the instruments of approval on behalf of the European Union as provided for in Article 3 of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 – April 2028, Article 11 of the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 – April 2028, Article 5 of the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and Article 4 of the Additional Protocol to the Agreement between the European Economic Community and Iceland in order to express the consent of the European Union to be bound by the Agreements and Protocols.

Article 3

This Decision shall enter into force on ....  4

Done at Brussels,

(1)    OJ L 141, 28.05.2016, pp. 3 and 11.

(2)    Document 8365/21 ADD 1 of the Council.

(3)    OJ L 141, 28.05.2016, pp. 18 and 22.

(4)    The date of entry into force of the Agreement will be published in the Official Journal of the European Union by the General Secretariat of the Council.

EUROPEAN COMMISSION

Brussels, 4.3.2024

COM(2024) 97 final

ANNEX

to the

Proposal for a

COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 - April 2028, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 - April 2028, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and the Additional Protocol to the Agreement between the European Economic Community and Iceland

ATTACHMENT I

AGREEMENT
BETWEEN THE EUROPEAN UNION, ICELAND,
THE PRINCIPALITY OF LIECHTENSTEIN AND THE KINGDOM OF NORWAY
ON AN EEA FINANCIAL MECHANISM FOR THE PERIOD MAY 2021 – APRIL 2028

THE EUROPEAN UNION,

ICELAND,

THE PRINCIPALITY OF LIECHTENSTEIN,

THE KINGDOM OF NORWAY,

WHEREAS the Parties to the Agreement on the European Economic Area ("EEA Agreement") agreed on the need to reduce the economic and social disparities between their regions with a view to promoting a continuous and balanced strengthening of trade and economic relations between them,

WHEREAS, in order to contribute to that objective, the EFTA States have established a Financial Mechanism in the context of the European Economic Area,

WHEREAS the provisions governing the EEA Financial Mechanism for the period 2004-2009 have been set out in Protocol 38a and the Addendum to Protocol 38a to the EEA Agreement,

WHEREAS the provisions governing the EEA Financial Mechanism for the period 2009-2014 have been set out in Protocol 38b and the Addendum to Protocol 38b to the EEA Agreement,

WHEREAS the provisions governing the EEA Financial Mechanism for the period 2014-2021 have been set out in Protocol 38c to the EEA Agreement,

WHEREAS the need to alleviate economic and social disparities within the European Economic Area persists, and therefore a new mechanism for the financial contributions of the EEA EFTA States should be established for the period May 2021 - April 2028,

HAVE DECIDED TO CONCLUDE THE FOLLOWING AGREEMENT:

ARTICLE 1

The text of Article 117 of the EEA Agreement shall be replaced by the following:

"Provisions governing the Financial Mechanisms are set out in Protocol 38, Protocol 38a, the Addendum to Protocol 38a, Protocol 38b, the Addendum to Protocol 38b, Protocol 38c and Protocol 38d.".

ARTICLE 2

A new Protocol 38d shall be inserted after Protocol 38c to the EEA Agreement. The text of Protocol 38d is provided for in the Annex to this Agreement.

ARTICLE 3

This Agreement shall be ratified or approved by the Parties in accordance with their own procedures. The instruments of ratification or approval shall be deposited with the General Secretariat of the Council of the European Union.

It shall enter into force on the first day of the second month after the last instrument of ratification or approval has been deposited.

Pending the completion of the procedures referred to in paragraphs 1 and 2, this Agreement shall be applied on a provisional basis as from the first day of the first month following the deposit of the last notification to this effect.

ARTICLE 4

This Agreement, drawn up in a single original in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Irish, Italian, Latvian, Lithuanian, Hungarian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish, Icelandic and Norwegian languages, the text in each of these languages being equally authentic, shall be deposited with the General Secretariat of the Council of the European Union, which will remit a certified copy to each of the Parties to this Agreement.

Done at Brussels, this ... of

For the European Union

For Iceland

For the Principality of Liechtenstein

For the Kingdom of Norway

ANNEX

   PROTOCOL 38d

on the EEA Financial Mechanism (2021-2028)

Article 1

(1)Objectives

Iceland, Liechtenstein and Norway (“the EFTA States”) shall contribute to the reduction of economic and social disparities in the European Economic Area and to the strengthening of their relations with the Beneficiary States, through financial contributions within the thematic priorities listed in Article 3 1 .

(2)Common values and principles

The EEA Financial Mechanism (2021-2028) is based on the common values and principles of respect for human dignity, freedom, democracy, equality, the rule of law and the respect for human rights including the rights of persons belonging to minorities.

All programmes and activities funded by the EEA Financial Mechanism shall be consistent with respect for these values and principles and abstain from supporting operations that may fail to do so. Their implementation shall comply with the fundamental rights and obligations enshrined in relevant instruments and standards.

Article 2

Commitments

The amount of the financial contribution provided for in Article 1 shall be EUR 1 705 million. An additional financial contribution of EUR 100 million shall also be made available for projects related to challenges experienced as a result of the invasion of Ukraine. These contributions shall be made available for commitment in annual tranches of EUR 257.86 million over the period running from 1 May 2021 to 30 April 2028 inclusive.

The total amount shall consist of country specific allocations as specified in Article 6 together with the funds specified in Article 7.

Article 3

(1)Thematic priorities

The country specific allocations shall be made available to promote the following overall thematic priorities;

(a)European green transition

(b)Democracy, rule of law and human rights

(c)Social inclusion and resilience

Within these thematic priorities, programme areas are set out in the Annex to this Protocol. The content of these programme areas will be consulted with the Beneficiary States.

(2)Needs of Beneficiary States

The programme areas shall be chosen, concentrated and adapted, to respond to the different needs in each Beneficiary State, taking into account its size and the amount of the contribution. To this end, the procedure to be followed is set out in Article 9 paragraph 5.

Article 4

(1)Memoranda of Understanding

In order to achieve concentration and to ensure efficient implementation, in line with the overall objectives referred to in Article 1, and taking into account EU policies and country specific recommendations, as well as Partnership Agreements concluded between the Member States and the European Commission, the EFTA States shall negotiate with each Beneficiary State a Memorandum of Understanding in accordance with Article 9 paragraph 5.

(2)Consultations with the European Commission

Consultations with the European Commission shall take place at strategic level and shall be held during the negotiations of the Memoranda of Understanding with a view to promoting complementarity and synergies with EU cohesion policy.

Article 5

(1)Co-financing

With respect to programmes under country specific allocations for which the Beneficiary States shall have implementation responsibility, the EFTA contribution shall not exceed 85 % of programme cost, unless otherwise decided by the EFTA States.

(2)State aid

The applicable rules on state aid shall be complied with.

(3)Liability

The responsibility of the EFTA States for the projects is limited to providing funds according to the agreed plan. Accordingly, the EFTA States will not assume any liability to third parties.

Article 6

Country specific allocations

The country specific allocations shall be made available to the following Beneficiary States: Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia, in accordance with the following distribution:

The amounts presented include the country specific allocations to be made available to each Beneficiary State in accordance with Article 9 paragraph 5, and the share of the fund for civil society referred to in Article 7 that shall benefit each Beneficiary State.

Article 7

Within the EEA Financial Mechanism, two funds shall be made available. They shall contribute to achieving the objectives of the EEA Financial Mechanism (2021-2028) as defined in Article 1, and to the thematic priorities referred to in Article 3. The EFTA States can participate as partners in the funds.

Fund for civil society

10% of the total amount shall be set aside for a fund for civil society. The distribution key for the Beneficiary States is set out in Article 6.

5 % of the fund shall be allocated to transnational initiatives.

Fund for capacity building and cooperation with international organisations and institutions

2 % of the total amount shall be set aside for a fund for capacity building and cooperation with international organisations and institutions i.a. the Council of Europe, OECD and the European Union Agency for Fundamental Rights (FRA). This fund will promote the thematic priorities in the Beneficiary States.

Article 8

(1)Coordination with the Norwegian Financial Mechanism

The financial contribution provided for in this Protocol shall be closely coordinated with the bilateral contribution from Norway provided for by the Norwegian Financial Mechanism. In particular, the EFTA States shall ensure that the procedures and implementation modalities are essentially the same for both financial mechanisms.

(2)Coordination with EU cohesion policy

Any relevant changes in the EU cohesion policy shall be taken into account, as appropriate.

Article 9

The following shall apply to the implementation of the EEA Financial Mechanism:

(1)Co-operation

The objectives of the EEA Financial Mechanism referred to in Article 1 shall be pursued in a framework of close co-operation between the Beneficiary States and the EFTA States, respecting the values and principles and complying with the rights and obligations referred to in Article 1 paragraph 2.

(2)Implementation principles

The highest degree of transparency, accountability and cost efficiency shall be applied in all implementation phases, together with respect for principles of good governance, partnership and multi-level governance, sustainable development, gender equality and non-discrimination.

(3)Management of the funds

The EFTA States shall operate and be responsible for the implementation, including management and control, of the two funds set out in Article 7.

(4)Financial Mechanism Committee

The EFTA States shall establish a committee for the overall management of the EEA Financial Mechanism. Further provisions for the implementation of the EEA Financial Mechanism, including simplification measures aimed at securing efficiency and effectiveness in implementation, will be issued by the EFTA States after consultations with the Beneficiary States which may be assisted by the European Commission. The EFTA States shall endeavor to issue these provisions before the signing of the Memoranda of Understanding.

(5)Negotiations of Memoranda of Understanding

The EFTA States shall negotiate with each Beneficiary State a Memorandum of Understanding concerning the respective country specific allocation, excluding the funds referred to in Article 7 and paragraph 3 of this article. The Memorandum of Understanding shall set out the programmes, the distribution of funds between programme areas, the structures for management and control and applicable conditions.

(6)Implementation

(a)On the basis of the Memoranda of Understanding, the Beneficiary States shall submit proposals for specific programmes to the EFTA States which shall appraise and approve the proposals and conclude grant agreements, with relevant conditions, risk assessment and mitigation, with the Beneficiary States for each programme.

(b)The implementation of the agreed programmes shall be the responsibility of the Beneficiary States which shall provide for an appropriate management and control system in order to ensure sound implementation and management.

(c)The EFTA States may carry out controls according to their internal requirements. The Beneficiary States shall provide all necessary assistance, information and documentation to this effect.

(d)To ensure compliance with obligations, the EFTA States may, following an assessment, after having heard the Beneficiary State, take appropriate and proportionate measures, including the suspension of payments and the recovery of funds.

(e)Partnerships shall, where appropriate, be applied in the preparation, implementation, monitoring and evaluation of the financial contribution in order to ensure broad participation. Partners may include, inter alia, local, regional and national levels, as well as the private sector, civil society and social partners in the Beneficiary States and the EFTA States.

(f)Any project under the programmes in the Beneficiary States may be implemented in cooperation between, inter alia, entities based in the Beneficiary States and in the EFTA States, in accordance with the applicable rules on public procurement.

(7)Management costs

The management costs of the EFTA States shall be covered by the total amount referred to in Article 2, and shall be specified in the provisions for the implementation referred to in paragraph 4 of this Article. Management costs for the Funds referred to in Article 7 will be covered by the amount allocated to the Funds.

(8)Reporting

The EFTA States shall report on their contribution to the objectives of the EEA Financial Mechanism.

Article 10

Review

At the end of the period as defined in Article 2 and without prejudice to the rights and obligations under the EEA Agreement, the Contracting Parties shall, in the light of Article 115 of the EEA Agreement, review the need to address economic and social disparities within the European Economic Area.

ANNEX TO PROTOCOL 38d

Green transition

Green business and innovation

Research and innovation

Education, training and youth employment

Culture

Local development, good governance and inclusion

Roma inclusion and empowerment

Public health

Disaster prevention and preparedness

Justice sector including domestic and gender-based violence, access to justice, correctional services, serious and organised crime

Asylum, migration and integration

Institutional cooperation and capacity building

Beneficiary states will also benefit from projects funded by:

Fund for civil society

Fund for capacity building and cooperation with international partner organisations and institutions

Gender equality and digitalisation will be mainstreamed and form part of all relevant programme areas.

(1)    In this Protocol, references to articles are, unless otherwise specified, to be understood as references to articles in the present Protocol.

EUROPEAN COMMISSION

Brussels, 4.3.2024

COM(2024) 97 final

ANNEX

to the

Proposal for a

COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 - April 2028, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 - April 2028, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and the Additional Protocol to the Agreement between the European Economic Community and Iceland

ATTACHMENT II

AGREEMENT
BETWEEN THE KINGDOM OF NORWAY AND THE EUROPEAN UNION ON A NORWEGIAN FINANCIAL MECHANISM FOR THE PERIOD MAY 2021 – APRIL 2028

Article 1

(1)Objectives

The Kingdom of Norway undertakes to contribute to the reduction of economic and social disparities in the European Economic Area and to the strengthening of its relations with the Beneficiary States, through a separate Norwegian Financial Mechanism within the thematic priorities listed in Article 3 1 .

(2)Common Values and Principles

The Norwegian Financial Mechanism (2021-2028) is based on the common values and principles of respect for human dignity, freedom, democracy, equality, the rule of law and the respect for human rights including the rights of persons belonging to minorities.

All programmes and activities funded by the Norwegian Financial Mechanism shall be consistent with respect for these values and principles and abstain from supporting operations that may fail to do so. Their implementation shall comply with the fundamental rights and obligations enshrined in relevant instruments and standards.

Article 2

Commitments

The amount of the financial contribution provided for in Article 1 shall be EUR 1 380 million. An additional financial contribution of EUR 83 million shall also be made available for projects related to challenges experienced as a result of the invasion of Ukraine. These contributions shall be made available for commitment in annual tranches of EUR 209 million over the period running from 1 May 2021 to 30 April 2028 inclusive.

The total amount shall consist of country specific allocations as specified in Article 6 together with the funds specified in Article 7.

Article 3

(1)Thematic priorities

The country specific allocations shall be made available to promote the following overall thematic priorities;

(a)European green transition

(b)Democracy, rule of law and human rights

(c)Social inclusion and resilience

Within these thematic priorities, programme areas are set out in the Annex to this Agreement. The content of these programme areas will be consulted with the Beneficiary States.

(2)Needs of Beneficiary States

The programme areas shall be chosen, concentrated and adapted, to respond to the different needs in each Beneficiary State, taking into account its size and the amount of the contribution. To this end, the procedure to be followed is set out in Article 9 paragraph 5.

Article 4

(1)Memoranda of Understanding

In order to achieve concentration and to ensure efficient implementation, in line with the overall objectives referred to in Article 1, and taking into account EU policies and country specific recommendations, as well as Partnership Agreements concluded between the Member States and the European Commission, the Kingdom of Norway shall negotiate with each Beneficiary State a Memorandum of Understanding in accordance with Article 9 paragraph 5.

(2)Consultations with the European Commission

Consultations with the European Commission shall take place at strategic level and shall be held during the negotiations of the Memoranda of Understanding with a view to promoting complementarity and synergies with EU cohesion policy.

Article 5

(1)Co-financing

With respect to programmes under country specific allocations for which the Beneficiary States shall have implementation responsibility, the contribution from the Kingdom of Norway shall not exceed 85 % of programme cost, unless otherwise decided by the Kingdom of Norway.

(2)State aid

The applicable rules on state aid shall be complied with.

(3)Liability

The responsibility of the Kingdom of Norway for the projects is limited to providing funds according to the agreed plan. Accordingly, the Kingdom of Norway will not assume any liability to third parties.

Article 6

Country specific allocations

The country specific allocations shall be made available to the following Beneficiary States: Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia, in accordance with the following distribution:

The amounts presented include the country specific allocations to be made available to each Beneficiary State in accordance with Article 9 paragraph 5, and the share of the fund for civil society referred to in Article 7 that shall benefit each Beneficiary State.

Article 7

Within the Norwegian Financial Mechanism, three funds shall be made available. They shall contribute to achieving the objectives of the Norwegian Financial Mechanism (2021-2028) as defined in Article 1, and to the thematic priorities referred to in Article 3. Norwegian entities can participate as partners in the funds.

(1)Fund for civil society

10% of the total amount shall be set aside for a fund for civil society. The distribution key for the Beneficiary States is set out in Article 6.

5 % of the fund shall be allocated to transnational initiatives.

(2)Fund for capacity building and cooperation with international organisations and institutions

2 % of the total amount shall be set aside for a fund for capacity building and cooperation with international organisations and institutions i.a. the Council of Europe, OECD and the European Union Agency for Fundamental Rights (FRA). This fund will promote the thematic priorities in the Beneficiary States.

(3)Fund for social dialogue and decent work

1 % of the total amount shall be set aside for a fund for social dialogue and decent work.

Article 8

(1)Coordination with the EEA Financial Mechanism

The financial contribution provided for in Article 1 shall be closely coordinated with the contribution from the EFTA States provided for by the EEA Financial Mechanism. In particular, the Kingdom of Norway shall ensure that the procedures and implementation modalities are essentially the same for both financial mechanisms.

(2)Coordination with EU cohesion policy

Any relevant changes in the EU cohesion policy shall be taken into account, as appropriate.

Article 9

The following shall apply to the implementation of the Norwegian Financial Mechanism:

(1)Co-operation

The objectives of the Norwegian Financial Mechanism referred to in Article 1 shall be pursued in a framework of close co-operation between the Beneficiary States and the Kingdom of Norway, respecting the values and principles and complying with the rights and obligations referred to in Article 1 paragraph 2.

(2)Implementation principles

The highest degree of transparency, accountability and cost efficiency shall be applied in all implementation phases, together with respect for principles of good governance, partnership and multi-level governance, sustainable development, gender equality and non-discrimination.

(3)Management of the funds

The Kingdom of Norway shall operate and be responsible for the implementation, including management and control, of the three funds set out in Article 7.

(4)Management by the Kingdom of Norway

The Kingdom of Norway, or an entity appointed by it, shall be responsible for the overall management of the Norwegian Financial Mechanism. Further provisions for the implementation of the Norwegian Financial Mechanism, including simplification measures aimed at securing efficiency and effectiveness in implementation, will be issued by the Kingdom of Norway after consultations with the Beneficiary States which may be assisted by the European Commission. The Kingdom of Norway shall endeavor to issue these provisions before the signing of the Memoranda of Understanding.

(5)Negotiations of Memoranda of Understanding

The Kingdom of Norway shall negotiate with each Beneficiary State a Memorandum of Understanding concerning the respective country specific allocation, excluding the funds referred to in Article 7 and paragraph 3 of this article. The Memorandum of Understanding shall set out the programmes, the distribution of funds between programme areas, the structures for management and control and applicable conditions.

(6)Implementation

(a)On the basis of the Memoranda of Understanding, the Beneficiary States shall submit proposals for specific programmes to the Kingdom of Norway which shall appraise and approve the proposals and conclude grant agreements, with relevant conditions, risk assessment and mitigation, with the Beneficiary States for each programme.

(b)The implementation of the agreed programmes shall be the responsibility of the Beneficiary States which shall provide for an appropriate management and control system in order to ensure sound implementation and management.

(c)The Kingdom of Norway may carry out controls according to their internal requirements. The Beneficiary States shall provide all necessary assistance, information and documentation to this effect.

(d)To ensure compliance with obligations, the Kingdom of Norway may, following an assessment, after having heard the Beneficiary State, take appropriate and proportionate measures, including the suspension of payments and the recovery of funds.

(e)Partnerships shall, where appropriate, be applied in the preparation, implementation, monitoring and evaluation of the financial contribution in order to ensure broad participation. Partners may include, inter alia, local, regional and national levels, as well as the private sector, civil society and social partners in the Beneficiary States and in the Kingdom of Norway.

(f)Any project under the programmes in the Beneficiary States may be implemented in cooperation between, inter alia, entities based in the Beneficiary States and in the Kingdom of Norway, in accordance with the applicable rules on public procurement.

(7)Management costs

The management costs of the Kingdom of Norway shall be covered by the total amount referred to in Article 2, and shall be specified in the provisions for the implementation referred to in paragraph 4 of this Article. Management costs for the Funds referred to in Article 7 will be covered by the amount allocated to the Funds.

(8)Reporting

The Kingdom of Norway shall report on its contribution to the objectives of the Norwegian Financial Mechanism.

Article 10

(1)This Agreement shall be ratified or approved by the Parties in accordance with their own procedures.  The instruments of ratification or approval shall be deposited with the General Secretariat of the Council of the European Union.

(2)It shall enter into force on the first day of the second month after the last instrument of ratification or approval has been deposited.

(3)Pending the completion of the procedures referred to in paragraphs 1 and 2, this Agreement shall be applied on a provisional basis as from the first day of the first month following the deposit of the last notification to this effect.

Article 11

This Agreement, drawn up in a single original in the Bulgarian, Czech, Croatian, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Irish, Italian, Latvian, Lithuanian, Hungarian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Norwegian languages, the text in each of these languages being equally authentic, shall be deposited with the General Secretariat of the Council of the European Union, which will remit a certified copy to each of the Parties to this Agreement.

Done at Brussels, this …. of  [year]

For the European Union

For the Kingdom of Norway

ANNEX

Green transition

Green business and innovation

Research and innovation

Education, training and youth employment

Culture

Local development, good governance and inclusion

Roma inclusion and empowerment

Public health

Disaster prevention and preparedness

Justice sector including domestic and gender-based violence, access to justice, correctional services, serious and organised crime

Asylum, migration and integration

Institutional cooperation and capacity building

Beneficiary states will also benefit from projects funded by:

Fund for civil society

Fund for capacity building and cooperation with international partner organisations and institutions

Fund for social dialogue and decent work

Gender equality and digitalisation will be mainstreamed and form part of all relevant programme areas.

(1)    In this Agreement, references to articles are, unless otherwise specified, to be understood as references to articles in the present Agreement.

EUROPEAN COMMISSION

Brussels, 4.3.2024

COM(2024) 97 final

ANNEX

to the

Proposal for a

COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 - April 2028, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 - April 2028, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and the Additional Protocol to the Agreement between the European Economic Community and Iceland

ATTACHMENT III

ADDITIONAL PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF ICELAND

THE EUROPEAN UNION

and

ICELAND

HAVING REGARD to the Agreement between the European Economic Community and the Republic of Iceland signed on 22 July 1972, and to the existing arrangements for trade in fish and fishery products between Iceland and the Community,

HAVING REGARD to the Additional Protocol to the Agreement between the European Economic Community and Iceland concerning special provisions applicable for the period 2014-2021 to imports into the Union of certain fish and fishery products, and in particular Article 1 thereof,

HAVE DECIDED TO CONCLUDE THIS PROTOCOL:

ARTICLE 1

1.The special provisions applicable to imports into the European Union of certain fish and fishery products originating in Iceland are laid down in this Protocol and the Annex thereto. The annual duty free tariff quotas are set out in the Annex to this Protocol. These tariff quotas shall be applicable from the day on which the provisional application of this Protocol becomes effective, according to procedures laid down in paragraph 3 of Article 4, until 30 April 2028.

2.At the end of this period, the Contracting Parties will assess the need to maintain the special provisions referred to in paragraph 1 and, if necessary, review the quota levels while taking into account all relevant interests.

ARTICLE 2

1.The tariff quotas shall be opened on the day on which the provisional application of this Protocol becomes effective, according to procedures laid down in paragraph 3 of Article 4.

2.The volumes of the tariff quotas are set out in the Annex to this Protocol. The first tariff quota shall be available from the date of provisional application of this Protocol until 30 April 2024. From 1 May 2024 onwards, subsequent tariff quotas shall be allocated annually from 1 May to 30 April until the end of the period referred to in Article 1 of this Protocol.

3.The tariff quota volumes covering the period from 1 May 2021 until the provisional application this Protocol shall be proportionally allocated and made available for the rest of the period referred to in Article 1 of this Protocol.

4.In case tariff quotas referred to in Article 1 are not exhausted during the period referred to in Article 1, and in case a subsequent protocol establishing duty-free tariff quotas for the same products is not provisionally applied, imports from Iceland can be made for the remaining accumulated quota volume of those tariff quotas for up to two years following the end of the period referred to in Article 1, but not longer than provisional application of a subsequent protocol establishing duty-free tariff quotas for the same products.

Article 3

The rules of origin applicable for the tariff quotas listed in the Annex to this Protocol shall be those set out in Protocol 3 to the Agreement between the European Economic Community and Iceland signed on 22 July 1972.

ARTICLE 4

1.This Protocol shall be ratified or approved by the Parties in accordance with their own procedures. The instruments of ratification or approval shall be deposited with the General Secretariat of the Council of the European Union.

2.It shall enter into force on the first day of the second month after the last instrument of ratification or approval has been deposited.

3.Pending the completion of the procedures referred to in paragraphs 1 and 2, this Protocol shall be applied on a provisional basis from the first day of the third month following the deposit of the last notification to this effect.

ARTICLE 5

This Protocol, drawn up in a single original, in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Irish, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Icelandic languages, the text in each of these texts being equally authentic, shall be deposited with the General Secretariat of the Council of the European Union, which will remit a certified copy to each of the Parties.

Done at Brussels, this....of 2024.

For the European Union

For the Republic of Iceland

Annex

SPECIAL PROVISIONS REFERRED TO IN ARTICLE 1 OF THE PROTOCOL

In addition to the existing permanent duty free tariff quotas, the European Union shall open the following annual duty free tariff quotas for products originating in Iceland:

(1)    Quantities shall be added in accordance with Article 2 paragraph 3 of this Protocol.

(2)    The benefit of the tariff quota shall not be granted to goods declared for release for free circulation during the period 15 February to 15 June.

EUROPEAN COMMISSION

Brussels, 4.3.2024

COM(2024) 97 final

ANNEX

to the

Proposal for a

COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism for the period May 2021 - April 2028, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021 - April 2028, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and the Additional Protocol to the Agreement between the European Economic Community and Iceland

ATTACHMENT IV

ADDITIONAL PROTOCOL TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE KINGDOM OF NORWAY

THE EUROPEAN UNION

and

THE KINGDOM OF NORWAY

HAVING REGARD to the Agreement between the European Economic Community and the Kingdom of Norway signed on 14 May 1973, hereinafter called the "Agreement", and to the existing arrangements for trade in fish and fishery products between Norway and the Community,

HAVING REGARD to the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway concerning special provisions applicable for the period 2014-2021 to imports into the Union of certain fish and fishery products, and in particular Article 1 thereof,

HAVE DECIDED TO CONCLUDE THIS PROTOCOL:

ARTICLE 1

1.The special provisions applicable to imports into the European Union of certain fish and fishery products originating in Norway are laid down in this Protocol and the Annex thereto.

2.The annual duty-free tariff quotas are set out in the Annex to this Protocol. These quotas shall cover the period from 1 May 2021 to 30 April 2028. The quota levels shall be reviewed by the end of the period taking into account all relevant interests.

ARTICLE 2

1.The tariff quotas shall be opened on the day on which the provisional application of this Protocol becomes effective, according to procedures laid down in paragraph 3 of Article 5.

2.The first tariff quota shall be available from the date of provisional application of this Protocol until 30 April 2024. From 1 May 2024 onwards, subsequent tariff quotas shall be allocated annually from 1 May to 30 April until the end of the period referred to in Article 1 of this Protocol.

3.The tariff quota volumes covering the period from 1 May 2021 until the provisional application this Protocol shall be proportionally allocated and made available for the rest of the period referred to in Article 1 of this Protocol.

4.In case tariff quotas referred to in Article 1 are not exhausted during the period referred to in article 1, and in case a subsequent protocol establishing duty-free tariff quotas for the same products is not provisionally applied, imports from Norway can be made for the remaining accumulated quota volume of those tariff quotas for up to 2 years following the end of the period referred to in Article 1, but not longer than provisional application of a subsequent protocol establishing duty-free tariff quotas for the same products.

Article 3

1. Norway shall take the necessary steps to ensure the continuation of the arrangement allowing for free transit of fish and fishery products landed in Norway from vessels flying the flag of a Member State of the European Union.

2.The arrangement shall apply for up to 2 years following the end of the period referred to in Article 1, but not longer than provisional application of a subsequent protocol.

Article 4

The rules of origin applicable for the tariff quotas listed in the Annex to this Protocol shall be those set out in Protocol 3 to the Agreement between the European Economic Community and the Kingdom of Norway signed on 14 May 1973.

ARTICLE 5

1.This Protocol shall be ratified or approved by the Parties in accordance with their own procedures. The instruments of ratification or approval shall be deposited with the General Secretariat of the Council of the European Union.

2.It shall enter into force on the first day of the second month following after the last instrument of ratification or approval has been deposited.

3.Pending the completion of the procedures referred to in paragraph 1 and 2 of this Article, this Protocol shall be applied on a provisional basis from the first day of the third month following the deposit of the last notification to this effect.

ARTICLE 6

This Protocol, drawn up in a single original, in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Irish, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Norwegian languages, the text in each of these texts being equally authentic, shall be deposited with the General Secretariat of the Council of the European Union, which will remit a certified copy to each of the Parties.

Done at Brussels, this....of 2024.

For the European Union

For the Kingdom of Norway

Annex

SPECIAL PROVISIONS REFERRED TO IN ARTICLE 1 OF THE PROTOCOL

In addition to the existing permanent duty free tariff quotas, the European Union shall open the following annual duty free tariff quotas for products originating in Norway:

(1)    Quantities shall be added in accordance with Article 2 paragraph 3 of this Protocol.

(2)    The benefit of the tariff quota shall not be granted to goods declared for release for free circulation during the period 15 February to 15 June.