# EUR-Lex - 52014PC0090 - EN

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# 52014PC0090

**Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union and its Member States, and provisional application of an Agreement on the participation of the Republic of Croatia in the European Economic Area and the related Protocol, to take account of the accession of the Republic of Croatia to the European Union /* COM/2014/090 final - 2014/0048 (NLE) */**

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EXPLANATORY MEMORANDUM

The Agreement on the European Economic
Area, hereinafter referred to as ‘the EEA Agreement’, was signed on 2 May 1992
and entered into force on 1 January 1994.

According to the Act of Accession of the Republic of Croatia, Croatia undertakes to accede, under the conditions laid down in the Act,
to the Agreement on the European Economic Area, in accordance with Article 128
of that Agreement.

The attached proposal creates the legal
instrument for the signature and provisional application of the Agreement on
the participation of the Republic of Croatia in the European Economic Area (‘the
Agreement’) and of the related Additional Protocol to
the Agreement between the Kingdom of Norway and the European Union on a
Norwegian Financial Mechanism for the period 2009-2014 consequent to the
participation of the Republic of Croatia in the European Economic Area (‘the Protocol’)
to take account of the accession of the Republic of Croatia to the European
Union.

On 4 September 2012[1], the
Council authorised the Commission to open negotiations with the Republic of Iceland, the Principality of Liechtenstein and the Kingdom of Norway to amend the
EEA Agreement and the Agreement between the Kingdom of Norway and the European
Union on a Norwegian Financial Mechanism for the period 2009-2014. The
negotiations with Iceland, Liechtenstein and Norway were successfully concluded
by the initialling of:

(1)     the Agreement;

(2)     the Protocol; and

(3)     two additional protocols, namely:

(a) the Additional Protocol to the Agreement between the European
Economic Community and the Republic of Iceland consequent to the accession of
the Republic of Croatia to the European Union; and

(b) the Additional Protocol to the Agreement between the European
Economic Community and the Kingdom of Norway consequent to the accession of the
  Republic of Croatia to the European Union.

These
two additional protocols are part of a package with the current Agreement and
Protocol but are contained in two separate proposals.

The proposed Agreement makes the Republic of Croatia a contracting party to the EEA Agreement and commits the EU to providing
an authentic version of the EEA Agreement in the new official language of the
EU. The Protocol includes Croatia in the Norwegian Financial Mechanism.

The provisional application of the
Agreement and the Protocol is envisaged as of the date stipulated by an
exchange of letters between the Parties, pending the completion of the relevant
procedures for its formal conclusion and entry into force.

The Commission has judged the results of
the negotiations to be satisfactory and asks the Council to adopt the attached
decision on the signature and provisional application of the Agreement.

2014/0048 (NLE)

Proposal for a

COUNCIL DECISION

on the signing, on behalf of the European
Union and its Member States, and provisional application of an Agreement on the
participation of the Republic of Croatia in the European Economic Area and the
related Protocol, to take account of the accession of the Republic of Croatia to
the European Union

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the
Treaty on the Functioning of the
European Union, and in particular Article 217 in
conjunction with Article 218(5) and the second subparagraph of Article 218(8) thereof,

Having regard to the
Act of Accession of the Republic of Croatia, and in particular Articles 6(2) and 6(5) thereof,

Having regard to the
proposal from the European Commission[2],

Whereas:

(1)       The Agreement on the
European Economic Area[3]
(‘the EEA Agreement’) was signed in Oporto on
2 May 1992.

(2)       The Republic of Croatia became a Member State of the European Union on 1 July 2013.

(3)       Under Article 6(5) of the
Act of Accession of the Republic of Croatia, Croatia undertakes to accede,
under the conditions laid down in the Act, to the Agreement on the European
Economic Area, in accordance with Article 128 of that Agreement.

(4)       On 4 September 2012, the
Council authorised the Commission to open negotiations with the Republic of Iceland, the Principality of Liechtenstein and the Kingdom of Norway to amend the
EEA Agreement and the Agreement between the Kingdom of Norway and the European
Union on a Norwegian Financial Mechanism for the period 2009-2014. The
negotiations were successfully concluded by the initialling of the Agreement on
the participation of the Republic of Croatia in the European Economic Area (‘the
Agreement’), and the related Additional Protocol to
the Agreement between the Kingdom of Norway and the European Union on a
Norwegian Financial Mechanism for the period 2009-2014 consequent to the
participation of the Republic of Croatia in the European Economic Area (‘the
Protocol’), both attached to this decision.

(5)       Two related protocols have
also been initialled, namely (a) the Additional Protocol to the Agreement
between the Kingdom of Norway and the European Union on a Norwegian Financial
Mechanism for the period 2009-2014 consequent to the participation of the
Republic of Croatia in the European Economic Area and (b) the Additional
Protocol to the Agreement between the European Economic Community and the
Republic of Iceland consequent to the accession of the Republic of Croatia to
the European Union. These two protocols will be the object of separate Council
decisions.

(6)       Pending the completion of
the procedures required to bring them into force and in order to maintain the
good functioning of the internal market within the European Economic Area, the
said Agreement and Protocol should be applied on a provisional basis pursuant
to Agreements in the form of an Exchange of Letters between the European Union
and Iceland, the Principality of Liechtenstein and the Kingdom of Norway,
respectively, from the day following the date on which the last of these
Exchanges of Letters has been completed.

(7)       The Agreement and the
related Protocol should be signed, subject to their conclusion at a later date,
and applied on a provisional basis,

HAS ADOPTED THIS DECISION:

Article 1

The signing on behalf of the Union and its
Member States of the Agreement on the participation of the Republic of Croatia
in the European Economic Area and the related Additional Protocol to the
Agreement between the Kingdom of Norway and the European Union on a Norwegian
Financial Mechanism for the period 2009-2014 is hereby authorised, subject to
the conclusion of the said Agreement and the related Protocol.

The text of the Agreement and the Protocol
is attached to this Decision.

Article 2

The Council General Secretariat shall
establish the instrument of full powers to sign the Agreement, subject to its
conclusion, for the person(s) indicated by the negotiator.

Article 3

Subject to its conclusion at a later date
and pending its entry into force, the Agreement and the Protocol shall be
applied on a provisional basis pursuant to Agreements in the form of an
Exchange of Letters has been completed from the day following the date on which
these last of the Exchanges of Letters has been completed.

The text of the Agreements in the form of an Exchange of Letters is
attached to this Decision.

Article 4

This Decision
shall enter into force on ....

Done at Brussels,

For
the Council

The
President

[1]               Council decision authorising the Commission to open
negotiations for the adaptation of the Agreement on the European Economic Area
and the Agreement between the Kingdom of Norway and the European Union on a
Norwegian Financial Mechanism for the period 2009-2014, in view of the
enlargement of the European Union to Croatia (Council doc. 12865/12 LIMITED).

[2]               OJ C , , p. .

[3]               OJ , , p. .