Annual
Report
The EEA
Financial Mechanism and the Norwegian Financial Mechanism
1 May 2004 to 30 April 2005
The EEA
Financial Mechanism and the Norwegian Financial Mechanism were established on 1
May 2004,
when the EU and the EEA were enlarged by 10 countries: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.
Through
these mechanisms Norway is contributing approximately EUR 1.134 billion
(approximately NOK 9.5 billion) for the period 2004-2009 in order to promote
economic and social cohesion in the enlarged EU, and to enhance the ability of
the new EU/EEA countries to participate fully in the internal market. Another
goal is to strengthen Norway’s bilateral relations with the
beneficiary states. Norway’s contribution makes up about 97 per cent
of the total amount; the remainder comes from our EEA/EFTA partners Iceland and Liechtenstein.

EPA Photo/ AFI/ Elmars Rudzitis
The EEA
Enlargement Agreement specifies which sectors are eligible for support. Actors
in a wide range of fields in the beneficiary states are eligible to apply for
funds, and Norwegian actors can benefit from the mechanisms through
co-operation with partners in these countries.
The Ministry
of Foreign Affairs has engaged in a broad dialogue with the beneficiary states
during the first year following the establishment of the mechanisms with a view
to reaching agreement on their priority areas within these sectors and how the
funds should be administered. This has resulted in memorandums of understanding
(MoUs) with the individual countries, which have so far been concluded with 9
of the 13 beneficiary states. Formal Rules and Procedures for the mechanisms
have been established in order to ensure proper control and implementation of
the projects.
The present
web report describes the dialogues and other measures carried out to provide a
sound framework for the EEA Financial Mechanisms that will ensure their
success. Up-to-date information relating to the mechanisms can be found at: www.eeagrants.org
Main issues
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Norwegian Foreign Minister Jan Petersen
and Czech Foreign Minister Cyril Svoboda sign the Memorandum of Understanding
on the use of the Norwegian Financial Mechanism in Prague on 19 October 2004.
With a view to promoting a continuous and
balanced strengthening of trade and economic relations between the Contracting
Parties, as provided for in Article 1, the Contracting Parties agree on the
need to reduce the economic and social disparities between their regions. They
note in this regard the relevant provisions set out elsewhere in this Agreement
and its related Protocols, including certain of the arrangements regarding
agriculture and fisheries.
- Article
115 of the EEA Agreement