The Council today adopted a decision on the signature and provisional application of the agreements on the European Economic Area (EEA) and Norwegian Financial Mechanisms for 2021-2028.

The decision covers also the signature and provisional application of two bilateral fish trade protocols with Iceland and Norway, which were negotiated in parallel.

In addition, the Council gave its agreement in principle and decided to request the consent of the European Parliament for the conclusion of these two agreements and two protocols.

EEA and Norwegian Financial Mechanisms for 2021-2028

The EEA and Norwegian Financial Mechanisms for 2021-2028 set out the contribution of the EEA EFTA states — Iceland, Liechtenstein, and Norway — to reducing the economic and social disparities in the European Economic Area.

The two financial mechanisms will together provide a financial contribution of €3.268 billion to economic and social cohesion in the European Economic Area from May 2021 to April 2028. 

This amount consists of country specific allocations to Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia, based on the distribution key for the Cohesion Fund.

The funding will be made available to promote three overall thematic priorities:

Bilateral fish trade protocols with Iceland and Norway 

The two ‘additional protocols' to EU’s bilateral agreements with Norway and Iceland, which were negotiated in parallel, provide for liberalisation of access to the EU market for some fish and fishery products originating in those countries from May 2021 to April 2028, building on the protocols for the 2014-2021 period.

Norway will also renew the fish transit arrangement for EU vessels landing catches in Norway.

Next steps

The Commission and the EEA EFTA states are now set to sign the respective agreements and protocols.

Following the relevant notifications, the agreements and the protocols will be applied provisionally until the completion of the procedures for their ratification or conclusion and entry into force.

The Council will adopt a decision on their conclusion after obtaining the consent of the European Parliament.

Background

The EEA Agreement, which entered into force in 1994, allows Iceland, Liechtenstein and Norway to participate fully in the single market. As a counterpart to this participation, since 1994 these 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 EEA Agreement. 

In addition, Norway has contributed through a separate Norwegian financial mechanism. 

Following the expiration of the financial mechanisms for 2014-2021, on 20 May 2021 the Council authorised the Commission to open negotiations with Iceland, Liechtenstein and Norway on their future financial contributions towards improving economic and social cohesion in the European Economic Area. 

Formal negotiations were opened on 16 June 2022. Separate negotiations took place on the EU-Iceland and EU-Norway fish trade protocols.

An agreement on the two agreements and the protocols was reached at negotiators' level on 30 November 2023.

See original press release on the Council website: https://europa.eu/!brQQrR