The Commission and EEA EFTA States (Iceland, Liechtenstein and Norway) reached agreement at negotiators' level on the EEA Financial Mechanism 2021-2028. The Financial Mechanism sets out the contribution of the EEA EFTA States to reducing the economic and social disparities in the EEA, with a view to promoting a continuous and balanced strengthening of trade and economic relations, and as a complement to the EU's Cohesion Policy objectives.
The Commission and Norway also reached an additional agreement at negotiators' level on a parallel Norwegian Financial Mechanism for the same period of time, pursuing similar objectives.
The Commission has also reached agreements with both Iceland and Norway on the temporary liberalisation of access to the EU market for some fish and seafood products over the same period. These agreements take the form of 'additional protocols' to long-standing bilateral agreements with the two countries.
Next Steps
All sides will now process the agreed texts in accordance with their respective procedures. The EU co-legislators will need to endorse the package.
Background
The Agreement on the European Economic Area (EEA), which entered into force on 1 January 1994, brings together the EU Member States and the three EEA EFTA States — Iceland, Liechtenstein and Norway — in a single market, thereby extending the benefits of the EU internal market to these three countries.
Articles 115 and 116 of the EEA Agreement aim at reducing the economic and social disparities between the EEA regions in order to promote a continuous and balanced strengthening of trade and economic relations. To this end, the EEA EFTA States contribute to a Financial Mechanism.
The Financial Mechanism is negotiated every seven years and specific agreements on market access for Iceland and Norwegian fishery products are also negotiated in the same time frame.
