[:uk]

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.

[:]