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    [:uk]Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period May 2021–April 2028[:]

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    Key Provisions of the Norway-EU Agreement on the Norwegian Financial Mechanism (2021–2028)


    Agreement Between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the Period May 2021–April 2028

    Article 1: Objectives and Principles

    1. Objectives

    The Kingdom of Norway commits to contributing to the reduction of economic and social disparities within the European Economic Area (EEA) and to strengthening its relations with the Beneficiary States. This commitment is fulfilled through a separate Norwegian Financial Mechanism focused on specific thematic priorities detailed in Article 3(1).

    2. Common Values and Principles

    The Norwegian Financial Mechanism (2021–2028) is grounded in common values such as respect for human dignity, freedom, democracy, equality, the rule of law, and human rights, including the rights of minorities. All funded programmes and activities must align with these values and principles and avoid supporting operations that do not comply. Implementation must adhere to fundamental rights and obligations set out in relevant instruments and standards.

    Article 2: Financial Commitments

    Norway will provide a financial contribution totaling EUR 1,380,000,000. An additional EUR 83,000,000 is allocated for projects addressing challenges arising from the invasion of Ukraine. These funds are available for commitment in annual tranches of EUR 209,000,000 from May 1, 2021, to April 30, 2028. The total amount includes country-specific allocations (Article 6) and funds specified in Article 7.

    Article 3: Thematic Priorities

    1. Overall Thematic Priorities

    The country-specific allocations aim to promote the following thematic priorities:

    • European Green Transition
    • Democracy, Rule of Law, and Human Rights
    • Social Inclusion and Resilience

    Within these priorities, programme areas are outlined in the Annex. Their content will be determined after consultations with the Beneficiary States.

    2. Addressing Needs of Beneficiary States

    Programme areas will be selected and tailored to address the unique needs of each Beneficiary State, considering its size and the allocated contribution. The procedure for this process is specified in Article 9(5).

    Article 4: Memoranda of Understanding

    1. Negotiation with Beneficiary States

    To ensure focused and efficient implementation aligned with the objectives in Article 1, Norway will negotiate a Memorandum of Understanding (MoU) with each Beneficiary State. These MoUs will consider EU policies, country-specific recommendations, and existing Partnership Agreements between Member States and the European Commission.

    2. Consultations with the European Commission

    Strategic-level consultations with the European Commission will occur during MoU negotiations to promote complementarity and synergies with EU cohesion policy.

    Article 5: Co-Financing, State Aid, and Liability

    1. Co-Financing Requirement

    For programmes where Beneficiary States are responsible for implementation, Norway’s contribution will not exceed 85% of the total programme cost, unless Norway decides otherwise.

    2. Compliance with State Aid Rules

    All activities must comply with applicable State aid regulations.

    3. Limitation of Liability

    Norway’s responsibility is limited to providing funds according to the agreed plan. Norway will not assume liability to third parties.

    Article 6: Country-Specific Allocations

    Allocations are made available to the following Beneficiary States:

    Beneficiary State Funds (EUR)
    Bulgaria 127,197,491
    Croatia 65,092,127
    Cyprus 8,613,472
    Czech Republic 110,034,588
    Estonia 35,081,761
    Hungary 124,271,436
    Latvia 53,529,539
    Lithuania 57,575,226
    Malta 5,462,877
    Poland 452,283,429
    Romania 291,616,358
    Slovakia 63,904,256
    Slovenia 24,437,440

    These amounts include the country-specific allocations as per Article 9(5) and each state’s share of the civil society fund mentioned in Article 7.

    Article 7: Dedicated Funds within the Mechanism

    Three funds are established to support the Mechanism’s objectives and thematic priorities. Norwegian entities may participate as partners.

    1. Fund for Civil Society

    • Allocation: 10% of the total amount.
    • Distribution: As per Article 6.
    • Transnational Initiatives: 5% of the fund is allocated here.

    2. Fund for Capacity Building and Cooperation

    • Allocation: 2% of the total amount.
    • Purpose: Supports capacity building and cooperation with international organizations and institutions, including the Council of Europe, OECD, and the European Union Agency for Fundamental Rights (FRA).
    • Focus: Promotes thematic priorities in Beneficiary States.

    3. Fund for Social Dialogue and Decent Work

    • Allocation: 1% of the total amount.

    Article 8: Coordination with Other Mechanisms

    1. Coordination with the EEA Financial Mechanism

    The contribution will be closely coordinated with the European Free Trade Association (EFTA) States’ contribution via the EEA Financial Mechanism. Norway ensures that procedures and implementation methods are essentially the same for both mechanisms.

    2. Coordination with EU Cohesion Policy

    Relevant changes in EU cohesion policy will be taken into account as appropriate.

    Article 9: Implementation Provisions

    1. Cooperation Framework

    Objectives are pursued through close cooperation between Norway and Beneficiary States, respecting shared values and complying with obligations stated in Article 1(2).

    2. Implementation Principles

    Implementation must uphold transparency, accountability, and cost efficiency, along with principles of good governance, partnership, sustainable development, gender equality, and non-discrimination.

    3. Management of the Funds

    Norway is responsible for operating and managing the three funds specified in Article 7, including oversight and control.

    4. Overall Management by Norway

    Norway, or an appointed entity, oversees the overall management of the Mechanism. Implementation provisions, including measures for efficiency, will be issued after consultations with Beneficiary States (possibly assisted by the European Commission). Norway aims to issue these provisions before signing the MoUs.

    5. Negotiation of Memoranda of Understanding

    Norway will negotiate MoUs with each Beneficiary State regarding country-specific allocations (excluding funds from Articles 7 and 9(3)). Each MoU will outline programmes, fund distribution between programme areas, management and control structures, and applicable conditions.

    6. Implementation Steps

    a) Programme Proposals and Approval

    Based on the MoUs, Beneficiary States submit specific programme proposals to Norway. Norway appraises and approves these proposals, concluding grant agreements with conditions, risk assessments, and mitigation measures.

    b) Responsibility of Beneficiary States

    Beneficiary States are responsible for implementing agreed programmes, ensuring appropriate management and control systems for sound execution.

    c) Control Measures by Norway

    Norway may conduct controls as per internal requirements. Beneficiary States must provide necessary assistance, information, and documentation.

    d) Compliance and Remedial Actions

    To ensure compliance, Norway may, after assessment and consultation with the Beneficiary State, take measures such as suspending payments or recovering funds.

    e) Partnerships

    Partnerships are encouraged in programme preparation, implementation, monitoring, and evaluation to ensure broad participation. Partners may include entities at local, regional, and national levels, as well as private sector, civil society, and social partners in both Beneficiary States and Norway.

    f) Project Cooperation

    Projects may be implemented collaboratively between entities in Beneficiary States and Norway, following applicable public procurement rules.

    7. Management Costs

    Norway’s management costs are covered by the total amount specified in Article 2 and detailed in the implementation provisions mentioned in Article 9(4). Management costs for the funds in Article 7 are covered by their allocated amounts.

    8. Reporting Obligations

    Norway will report on its contributions towards achieving the Mechanism’s objectives.

    Article 10: Ratification and Entry into Force

    1. Ratification Procedures

    The Agreement must be ratified or approved by the Parties according to their procedures. Instruments of ratification or approval are to be deposited with the General Secretariat of the Council of the European Union.

    2. Entry into Force

    The Agreement enters into force on the first day of the second month after the last instrument of ratification or approval is deposited.

    3. Provisional Application

    Pending completion of ratification procedures, the Agreement will be applied provisionally from the first day of the month following the deposit of the last notification.

    Article 11: Language and Depository Details

    The Agreement is drawn up in a single original in multiple languages, each being equally authentic. It is deposited with the General Secretariat of the Council of the European Union, which provides certified copies to each Party.

    Annex: Programme Areas

    The following programme areas support the thematic priorities:

    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 and Home Affairs

    • Justice Sector (including domestic and gender-based violence, access to justice, correctional services, serious and organized crime)
    • Asylum, Migration, and Integration
    • Institutional Cooperation and Capacity Building

    Beneficiary States also benefit from projects funded by:

    • Fund for Civil Society
    • Fund for Capacity Building and Cooperation with International Partner Organizations and Institutions
    • Fund for Social Dialogue and Decent Work

    Gender equality and digitalization are mainstreamed across all relevant programme areas.


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