The European Parliament adopted by 570 votes to 38, with 23 abstentions, a resolution on the draft Council decision on conclusion of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism 2014-2021, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2014-2021, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway, and the Additional Protocol to the Agreement between the European Economic Community and Iceland.

The European Parliament gave its consent to the conclusion of the agreements and protocols.

The EEA Financial Mechanism Agreement and the Norway Agreement will together provide a financial contribution of the EEA EFTA States to the economic and social cohesion in the EEA of EUR 2.8 billion for the period 2014-2021. The review of the EU-Iceland and EU-Norway fish trade protocols led to new concessions being granted to both countries for the period 2014-2021.

The Committee on International Trade adopted the report by David BORRELLI (EFDD, IT) on the draft Council decision on conclusion of the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism 2014-2021, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2014-2021, the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway, and the Additional Protocol to the Agreement between the European Economic Community and Iceland.

The committee recommended the European Parliament to give its consent to the conclusion of the agreements and protocols.

The EEA Financial Mechanism Agreement and the Norway Agreement will together provide a financial contribution of the EEA EFTA States to the economic and social cohesion in the EEA of EUR 2.8 billion for the period 2014-2021. A certain amount of financial resources shall be allocated to tackle youth unemployment. This outcome means an overall increase in the financial contribution of 11.3 % compared to the period 2009-2014.

The review of the EU-Iceland and EU-Norway fish trade protocols led to new concessions being granted to both countries for the period 2014-2021.

The rapporteur is in favour of setting up a new mechanism for the financial contributions of the EEA EFTA States and a new Norwegian financial mechanism in view of the continuing need to alleviate the economic and social disparities within the European Economic Area.

PURPOSE: to conclude: (i) the Agreement between the European Union, Iceland, Liechtenstein and Norway on an EEA Financial Mechanism 2014-2021, (ii) the Agreement between Norway and the European Union on a Norwegian Financial Mechanism for the period 2014-2021, (ii) the Additional Protocol to the Agreement between the European Economic Community and Norway and, (iv) the Additional Protocol to the Agreement between the European Economic Community and Iceland.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. 

BACKGROUND: the alleviation of economic and social disparities within the European Economic Area remains necessary.

In view of that, a new mechanism for the financial contributions of the EEA EFTA States and a new Norwegian financial mechanism should be established.

On 7 October 2013, the Council authorised the Commission to open negotiations with Iceland, Liechtenstein and Norway on an agreement on the future financial contributions of the EEA EFTA States to economic and social cohesion in the European Economic Area.

The EEA Financial Mechanism (2014-2021) and the Norway Grants (2014-2021) will contribute to achieving the overall objectives of the Europe 2020 strategy for smart, sustainable and inclusive growth.

The replacement of the existing financial mechanisms by new mechanisms, which relate to different time periods, different amounts of funds, and different implementing provisions, as well as the renewal and extension of the concessions relating to certain fish and fisheries products, taken as a whole, constitute an important development of the association with the EEA EFTA States, which justifies the recourse to Article 217 of the TFEU (legal basis for the conclusion of an association agreement).

In this context:

• the Agreement between the EU, Iceland, Liechtenstein and Norway on an EEA Financial Mechanism 2014-2021;
• the Agreement between Norway and the EU on a Norwegian Financial Mechanism for the period 2014-2021;
• the Additional Protocol to the Agreement between the European Economic Community and Norway, and the Additional Protocol to the Agreement between the European Economic Community and Iceland were all signed in Brussels.

It is now necessary to approve those Agreements and Protocols on behalf of the Union.

CONTENT: with this proposal, the Council is called upon to adopt the Decision on the conclusion of the EEA Financial Mechanism Agreement, the Norway Agreement, the Norway Protocol and the Iceland Protocol after obtaining the consent of the European Parliament.

The EEA Financial Mechanism Agreement and the Norway Agreement will together provide a financial contribution of the EEA EFTA States to the economic and social cohesion in the EEA of EUR 2.8 billion for the period 2014-2021.

For further details on the main issues of the proposal, please refer to the summary of the Commission’s initial legislative proposal from 23.2.2016.

The Agreements and Protocols are to be applied provisionally as of the dates stipulated in their Articles, pending completion of the relevant procedures for their ratification or conclusion and entry into force.

PURPOSE: to conclude (i) the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism 2014-2021, (ii) the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2014-2021, (ii) the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and, (iv) the Additional Protocol to the Agreement between the European Economic Community and Iceland.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. 

BACKGROUND: there remains a need to alleviate economic and social disparities within the European Economic Area (EEA), and a new mechanism for the financial contributions of the EEA EFTA States and a new Norwegian financial mechanism should therefore be established.

On 7 October 2013, the Council authorised the Commission to open negotiations with Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an agreement on the future financial contributions of the EEA EFTA States to economic and social cohesion in the European Economic Area.

In parallel, but independently of the negotiations on the financial mechanism, a review of the EU-Iceland and EU-Norway fish trade protocols was opened on the basis of the revision clause of the additional protocols to the Free Trade Agreements with Norway and Iceland.

The negotiations were concluded at negotiators’ level with the initialling on 17 July 2015 of:

• the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism 2014-2021;
• the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2014-2021;
• the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway;
• the Additional Protocol to the Agreement between the European Economic Community and Iceland.

CONTENT: with this proposal, the Commission proposes that the Council adopts the attached Decision on the conclusion of the EEA Financial Mechanism Agreement, the Norway Agreement, the Norway Protocol and the Iceland Protocol after obtaining the consent of the European Parliament.

The EEA Financial Mechanism Agreement and the Norway Agreement will together provide a financial contribution of the EEA EFTA States to the economic and social cohesion in the EEA of EUR 2.8 billion for the period 2014-2021 which will contribute to achieving the overall objectives of the Europe 2020 strategy for smart, sustainable and inclusive growth. They will also allocate a certain amount of financial resources to tackling youth unemployment.

The review of the EU-Iceland and EU-Norway fish trade protocols led to new concessions being granted to both countries for the period 2014-2021. These concessions essentially constitute a renewal of the concessions that were in place for the period 2009-2014 with:

• for Iceland, a modest increase in the two tariff quotas;
• for Norway, a modest increase in the concessions for some tariff lines and a renewal of the previous concessions for other tariff lines. Norway will renew the fish transit arrangement for a seven-year period, starting from date when the new concessions come into provisional application.

The Agreements and Protocols are to be applied provisionally as of the dates stipulated in their Articles, pending completion of the relevant procedures for their ratification or conclusion and entry into force.

PURPOSE: to conclude (i) the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism 2014-2021, (ii) the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2014-2021, (ii) the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway and, (iv) the Additional Protocol to the Agreement between the European Economic Community and Iceland.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. 

BACKGROUND: there remains a need to alleviate economic and social disparities within the European Economic Area (EEA), and a new mechanism for the financial contributions of the EEA EFTA States and a new Norwegian financial mechanism should therefore be established.

On 7 October 2013, the Council authorised the Commission to open negotiations with Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an agreement on the future financial contributions of the EEA EFTA States to economic and social cohesion in the European Economic Area.

In parallel, but independently of the negotiations on the financial mechanism, a review of the EU-Iceland and EU-Norway fish trade protocols was opened on the basis of the revision clause of the additional protocols to the Free Trade Agreements with Norway and Iceland.

The negotiations were concluded at negotiators’ level with the initialling on 17 July 2015 of:

• the Agreement between the European Union, Iceland, the Principality of Liechtenstein and the Kingdom of Norway on an EEA Financial Mechanism 2014-2021;
• the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2014-2021;
• the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway;
• the Additional Protocol to the Agreement between the European Economic Community and Iceland.

CONTENT: with this proposal, the Commission proposes that the Council adopts the attached Decision on the conclusion of the EEA Financial Mechanism Agreement, the Norway Agreement, the Norway Protocol and the Iceland Protocol after obtaining the consent of the European Parliament.

The EEA Financial Mechanism Agreement and the Norway Agreement will together provide a financial contribution of the EEA EFTA States to the economic and social cohesion in the EEA of EUR 2.8 billion for the period 2014-2021 which will contribute to achieving the overall objectives of the Europe 2020 strategy for smart, sustainable and inclusive growth. They will also allocate a certain amount of financial resources to tackling youth unemployment.

The review of the EU-Iceland and EU-Norway fish trade protocols led to new concessions being granted to both countries for the period 2014-2021. These concessions essentially constitute a renewal of the concessions that were in place for the period 2009-2014 with:

• for Iceland, a modest increase in the two tariff quotas;
• for Norway, a modest increase in the concessions for some tariff lines and a renewal of the previous concessions for other tariff lines. Norway will renew the fish transit arrangement for a seven-year period, starting from date when the new concessions come into provisional application.

The Agreements and Protocols are to be applied provisionally as of the dates stipulated in their Articles, pending completion of the relevant procedures for their ratification or conclusion and entry into force.