Report and motion on the new EEA Financial Mechanism
Vaduz (ots)
The EEA Financial Mechanism promotes economic and social balance within the European Economic Area (EEA). Following the conclusion of negotiations on the new 2021-2028 mechanism at the end of last year, the Government has now adopted the report and motion for submission to the Liechtenstein Parliament.
As a member of the EEA, Liechtenstein - together with its EEA/EFTA partners Norway and Iceland - has committed to supporting economically weaker EU Member States through the EEA Financial Mechanism, thereby reducing inequalities within the EEA. This mechanism -similar to cohesion funding within the EU itself - is intended to strengthen the competitiveness of these countries. In the medium term, this opens up new sales markets for Liechtenstein companies. The success of the EU single market depends on the successful development and participation of all its Member States. Moreover, the EEA Financial Mechanism is intended to strengthen bilateral relations with the beneficiary countries. For this purpose, specific funds are made available to Liechtenstein for bilateral projects.
The Financial Mechanism for the years 2021-2028 is the sixth since the EEA Agreement entered into force. Negotiations on the new mechanism began with considerable delay in June 2022 and were concluded on 30 November 2023. The Agreement on the EEA Financial Mechanism 2021-2028 includes the commitment of the three EEA/EFTA States to provide a contribution of EUR 1.805 billion during the period from 1 May 2021 to 30 April 2028. This contribution includes EUR 100 million specifically earmarked for projects related to Ukraine.
The division of costs between Liechtenstein, Iceland, and Norway is based on the ratio of the gross domestic products (GDPs) of the EEA/EFTA States. Since the precise amount of Liechtenstein's share depends on the future development of GDP in the three EFTA/EEA States, it cannot be determined in advance. Based on the latest figures, a commitment credit of EUR 26.9 million will be requested from Parliament, with a proposal that the credit be indexed according to the actual GDP development.
Contact:
Ministry of Foreign Affairs, Education and Sport
Martin Frick, Director Office for Foreign Affairs
T +423 236 60 50
martin.frick@llv.li