Norway and EEA Enlargement - New Financial
Arrangements
On 1 May 2004 ten new countries will become
members of the European Union. These 10 new members will
at the same time become parties to the EEA Agreement that
makes the EFTA EEA countries, Iceland, Liechtenstein and
Norway, part of the EU internal market. In the negotiations
on extending the EEA Agreement, it was decided that two
new financial arrangements should be established. One is
the EEA financial mechanism, and the other is a separate
Norwegian bilateral financial instrument. These arrangements
will mean that Norway's contribution to economic and social
cohesion in the enlarged EEA will be 10 times larger than
it was before.
The EEA financial mechanism applies to the
new member countries and Greece, Portugal and Spain. The
main priority areas are the environment, promotion of sustainable
development, securing the European cultural heritage, education,
health and child care. The budget for this mechanism is
EUR 120 million (about NOK 996 million) a year.
The Norwegian financial instrument applies
only to the new member countries. Its purpose is to enable
these countries to participate fully in the internal market
and to reduce the social and economic disparities within
the EU after enlargement. Priority areas include projects
to assist the 10 new members to adapt to the Schengen cooperation,
justice and home affairs, environmental measures, regional
policy, regional policy and cross-border activities and
technical assistance relating to implementation the of EU
legislation. The total budget is EUR 113.4 million (about
NOK 941 million) a year. A joint secretariat for the two
arrangements will most likely be established in Brussels
when the arrangements enter into force. The recipient countries
will themselves be responsible for proposing, developing
and implementing the projects. A continual dialogue will
be maintained with the recipient countries on the use of
the funds. Recipients will have to pay a share (15-40 per
cent) of the project costs. Project support will be allocated
in accordance with EEA rules relating to public procurement,
state aid and competition.
The two new financial arrangements will enter
into force on 1 May 2004.
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