EEA Grants

The EEA Grants and Norway Grants are the financial contributions of Norway, Iceland and Liechtenstein towards the reduction of economic and social disparities in the European Economic Area (EEA) and to strengthen bilateral relations with 16 EU and EEA Member States in Northern, Central and Southern Europe.

Through the Grants Iceland, Liechtenstein and Norway are also contributing to strengthening fundamental European values such as democracy, tolerance and the rule of law.

Iceland, Liechtenstein and Norway are partners with the EU through the Agreement on the European Economic Area. This enables the free movement of goods, services, people and capital in the internal market.

The EEA Agreement also includes a common goal of reducing social and economic disparities in Europe. Ever since the agreement entered into force in 1994, Iceland, Liechtenstein and Norway have contributed to social and economic progress in the less wealthy countries of the EU and EEA.

The contributions have been channelled through the Financial Mechanism (1994–1998), the Financial Instrument (1999–2003) and the EEA and Norway Grants (2004-2009 and 2009-2014).

Since 2004, there have been two separate mechanisms: the EEA Grants and the Norway Grants. Norway is the main contributor to both mechanisms (EEA Grants: 95.8% and Norway Grants: 100%).

In the agreements on the Financial Mechanisms 2009-2014, strengthening the bilateral relations between the donor and the beneficiary countries was introduced as an overall objective in addition to reducing social and economic disparities.

When a funding period expires, the donor countries and the EU assess the need for continued support to reduce social and economic disparities within the EEA and negotiate on the financial contributions.

Eligibility of the Grants mirrors criteria set for the EU Cohesion Fund aimed at member states where the Gross National income per inhabitant is less than 90% of the EU average. Countries who have entered the EU before 2004 are however exempt from receiving funding under the Norway Grants.

The Donors and the EU agree both to the total contribution and distribution of funding per beneficiary state.

Within the national allocation, the Donors then negotiate with each beneficiary country and agree which programmes to establish, their objectives and the size of the allocation to each individual programme. The agreements are based on national needs and priorities in the beneficiary states and the scope for cooperation with the donor states.

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