Background on the EEA and Norway Grants

The EEA Enlargement Agreement, applicable since 1 May 2004, stipulates that o­n becoming members of the European Union, the 10 accession countries would also become parties to the EEA Agreement. By signing the EEA Enlargement Agreement, the EEA EFTA States agreed to continue their efforts to enhance cohesion within the European Economic Area and to focus their efforts o­n the new Member States. To that effect, they established the EEA Financial Mechanism and the Norwegian Financial Mechanism.

The ten new Member States will be eligible for assistance from both Mechanisms. The EEA Financial Mechanism will also grant assistance to Spain, Portugal and Greece. The Mechanisms will make commitments from 1 May 2004 to 30 April 2009.

These two Mechanisms aim to enable the new Member States to participate fully in the Internal Market and to reduce the social and economic disparities within the EEA.

EEA Financial Mechanism

Protocol 38a establishing the EEA Financial Mechanism, was incorporated into the EEA Agreement by the EEA Enlargement Agreement.

The EEA Financial Mechanism will make 600 million euros available for commitments in annual tranches of 120 million euros over the commitment period. This amount is a five-fold increase of the EFTA States' contribution under the EEA Financial Instrument 1999-2003. Grants are available for projects in the following sectors:

a) Protection of the environment, including the human environment, through, inter alia, reduction of pollution and promotion of renewable energy;

b) Promotion of sustainable development through improved resources use and management;

c) Conservation of European cultural heritage, including public transport, and urban renewal;

d) Human resources development through, inter alia, promotion of education and training, strengthening of administrative or public service capacities of local government or its institutions as well as the democratic processes, which support it.

e) Health and childcare.

Academic research may also be eligible for funding in so far as it targets o­ne or more of the priority sectors.

Norwegian Financial Mechanism

The Agreement between the Kingdom of Norway and the European Community, establishing the Norwegian Financial Mechanism was constituted at the same time as Protocol 38a, establishing the EEA Financial Mechanism.

The Norwegian Financial Mechanism will make available 567 million euros for commitments in annual tranches of 113.4 million euros over the commitment period. Together the two Mechanisms will generate an almost ten-fold increase of today's contribution. Grants are available for projects in the same sectors as in the EEA Financial Mechanism. Priority will nevertheless be given to projects in the fields of:

Implementation of Schengen acquis, support of National Schengen Action Plans as well as strengthening the judiciary,
Environment, i.a. with emphasis o­n strengthening the administrative capacity to implement relevant acquis and investments in infrastructure and technology with priority given to municipal waste management,
Regional policy and cross-border activities,
Technical assistance relating to the implementation of acquis communautaire.
Further information o­n the Norwegian Financial Mechanism is available at the website of the Norwegian Ministry of Foreign Affairs.


Decision Making

Although the two Mechanisms are closely coordinated, decisions o­n the granting of assistance are taken separately with each entity being responsible for the management of its own decisions.

Decisions o­n the granting of assistance by the EEA Financial Mechanism are taken by the EEA Financial Mechanism Committee (the FMC), in which, each EFTA State, party to the EEA Agreement, is represented.

Decisions o­n the granting of assistance by the Norwegian Financial Mechanism are taken by the Norwegian Ministry of Foreign Affairs.

Coordination

To facilitate the close coordination foreseen for the two Mechanisms, identical procedures apply to both. Furthermore, a single Financial Mechanism Office (the FMO) has been established to assist in the management of the Mechanisms.

The FMO

The FMO reports to the FMC and to the Norwegian Ministry of Foreign Affairs respectively. The Office is responsible for the day-to-day running of the two Mechanisms and serves as a contact point. The FMO cooperates with the National Focal Points in the Beneficiary States, to which applications should be submitted. Potential applicants are advised to address their National Focal Point for information o­n the application process and to submit applications.