EN    EN EN 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 12.8.2008 
SEC(2008) 2376 final 
  
Draft 
DECISION OF THE EEA JOINT COMMITTEE  
No […] 
of […] 
amending Protocol 32 to the Agreement on financial modalities for implementation of 
Article 82 
- Draft common position of the Community - 
(presented by the Commission) 
EN 2   EN EXPLANATORY MEMORANDUM  
1. Protocol 32 to the EEA Agreement contai ns financial modalities for implementation 
of Article 82 of the Agreement. 
2. The attached draft Decisi on of the EEA Joint Committee aims to amend and simplify 
Protocol 32 to the Agreement to more accurately reflect the current budgetary structure and procedure of the European  Commission. The revi sion also aims at 
describing the EEA budgetary process in mo re detail and in a comprehensive way.  
3. Article 1.3 of Council Regulation (EC) No  2894/94 concerning the arrangements for 
implementing the EEA Agreement envisages that the Council establish the Community position for such Decisions on a proposal from the Commission. 
4. The draft Decision of the EEA Joint Committee is submitted for the approval of the 
Council. The Commission would hope to be able to put forward the position of the Community in the EEA Joint Committee at the earliest possible opportunity. 
EN 3   EN Draft 
DECISION OF THE EEA JOINT COMMITTEE  
No  
of  
amending Protocol 32 to the Agreement on financial modalities for implementation of 
Article 82 
THE EEA JOINT COMMITTEE, 
Having regard to the Agreement on the Eur opean Economic Area, as amended by the 
Protocol adjusting the Agreement on the European  Economic Area, hereinafter referred to as 
‘the Agreement’, and in particul ar Articles 86 and 98 thereof, 
Whereas: (1) Protocol 32 to the Agreement has not previously been amended by the EEA Joint 
Committee. 
(2) The Council of the European Union a dopted on the 25 June 2002 Regulation (EC, 
Euratom) No 1605/2002 on the Financial Regu lation applicable to  the general budget 
of the European Communities
1, which was amended by Council Regulation (EC, 
Euratom) No 1995/2006 of 13 December 20062 and by Council Regulation (EC) No 
1525/2007 of 17 December 20073. 
(3) Protocol 32 should reflect the new procedures provided fo r in Council Regulation (EC, 
Euratom) No 1605/2002. 
(4) The procedure laid down in Protocol 32 shoul d be set out in more detail, including the 
deadlines applicable within this procedure. 
(5) The contributions by the EFTA States should no longer be paid in two stages. 
(6) Obsolete provisions should be deleted from Protocol 32. (7) Protocol 32 to the Agreemen t should therefore be amended, 
                                                
 
1 OJ L 248, 16.9.2002, p. 1. 
2 OJ L 390, 30.12.2006, p. 1. 
3 OJ L 343, 27.12.2007, p. 9. 
EN 4   EN HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 32 to the Agreement shall be amended as specified in the Annex to this Decision. 
Article 2 
This Decision shall enter into force on the day following the last notification to the EEA Joint 
Committee under Article 103(1) of the Agreement4. 
Article 3 
This Decision shall be publishe d in the EEA Section of, and in the EEA Supplement to, the 
Official Journal of the European Union . 
Done at Brussels, . 
 For the EEA Joint Committee 
 The President        The Secretaries  to the EEA Joint Committee  
                                                
 
4 [Constitutional requirements indicated.] [No constitutional requirements indicated.] 
EN 5   EN ANNEX  
to Decision of the EEA Joint Committee No […] 
The text of Protocol 32 to the Agreem ent shall be replaced by the following: 
‘Article 1 
Procedure for the determination of the financ ial participation of the EFTA States for 
each financial year (n) 
1. At the latest by 31 January of each y ear (n-1) the European Commission shall 
communicate to the Standing Committee of  the EFTA States the financial 
programming document covering the activities  to be implemented for the remaining 
period of the relevant Multiannual Financ ial Framework and giving the indicative 
commitment appropriations foreseen for these activities. 
2. The Standing Committee of the EFTA Stat es shall communicate to the European 
Commission at the latest by 15 February of  the year (n-1), a list of Community 
activities which the EFTA States wish, fo r the first time, to include in the EEA 
Annex to the provisional draft budget of th e European Union for the financial year 
(n). The list shall be without prejudice to new proposals that are introduced by the 
Community during the year and without prej udice to the final position adopted by the 
EFTA States as regards their pa rticipation in these activities. 
3. At the latest by 15 May of each year  (n-1), the European Commission shall 
communicate to the Standing Committee of th e EFTA States its position concerning 
the requests of the EFTA States for participation in activities during the financial year (n), together with the following information: 
(a) the indicative amounts entered “for information” as commitment and payment 
appropriations, in the statement of expenditure of the draft budget of the 
European Union for the activities in whic h the EFTA States ar e taking part or 
have indicated a wish to take part and calculated in accordance with the 
provisions of Article 82 of the Agreement; 
(b) the estimated amounts corresponding to the contributions of the EFTA States, 
entered “for information” in the stat ement of revenue of the draft budget. 
The position of the European Commission shall be without prejudice to the 
possibility of continuing discussions on activities for which it has not accepted the 
participation of the EFTA States. 
4. In the event that the amounts referred to in paragraph 3 are not in accordance with 
the provisions of Article 82 of the Agreem ent, the Standing Committee of the EFTA 
States may request corrections befo re 1 July of the year (n-1). 
5. The amounts referred to in paragraph 3 sh all be adjusted following the adoption of 
the General Budget of the European Union, with due respect to  the provisions of 
Article 82 of the Agreement. These adjust ed amounts shall be communicated to the 
Standing Committee of the EF TA States without delay. 
EN 6   EN 6. Within a period of 30 days following the publication of the General Budget of the 
European Union in the Official Journal of the European Union, the Chairs of the EEA Joint Committee shall confirm, by an exchange of letters initiated by the European Commission, that the amounts ente red in the EEA Annex to the General 
Budget of the European Union are in accordan ce with the provisions of Article 82 of 
the Agreement. 
7. At the latest by 1 June of the financial ye ar (n), the Standing Committee of the EFTA 
States shall communicate to the European  Commission the final breakdown of the 
contribution for each EFTA State. This breakdown shall be binding. 
Should this information not be provided by 1 June of the financial year (n), the 
percentages of the breakdown implemente d during the year (n -1) shall apply on a 
provisional basis. The adjustment shall be made according to the procedure set out in Article 4. 
8. If by 10 July of the financial year (n) at the latest, unless a late r date is agreed upon 
in exceptional circumstances, a decision of the EEA Joint Committee establishing the 
participation of the EFTA States in an activity included in the EEA Annex to the 
General Budget of the European Union for the year (n) is not adopted or if the fulfilment of constitutional requirements fo r such a decision, if any, is not notified by 
that date at the latest, the participation of  the EFTA States in the activity in question 
shall be deferred to the year (n+1), unless otherwise agreed. 
9. Once the participation of the EFTA States in  an activity is established for a year (n), 
the financial contribution of th e EFTA States shall apply to all the transactions that 
are made on the relevant budget lines in that  financial year, unless otherwise agreed. 
Article 2 
Making available the contribut ions of the EFTA States 
1. On the basis of the EEA Annex to the General Budget of the European Union, 
finalised in accordance with Articles 1(6) and 1(7), the European Commission shall 
establish, for each EFTA State, a call for funds calculated on the basis of the payment appropriations and in accordance  with Article 71(2) of the Financial 
Regulation
5. 
2. This call for funds shall reach the EFTA States no later than 15 August of the year 
(n) and shall request the payment by each EFTA State of its contribution by 31 
August of the year (n) at the latest. 
If the General Budget of the European Union is not adopted before 10 July of the 
year (n), or the date agreed upon pur suant to Article 1(8) in exceptional 
circumstances, the payment shall be requested on the basis of the indicative amount 
                                                 
5 Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation 
applicable to the general budget of the European Communities (OJ L 248, 16.9.2002, p. 1), as amended by Council Regulation (EC, Euratom) No 1995/2006 of 13 December 2006 (OJ L390, 30.12.2006, p. 1, 
as corrected by OJ L 48, 22.2.2 008, p. 88) and Council Regulation (EC) No 1525/2007 of 17 December 
2007 (OJ L 343, 27.12.2007, p. 9). 
EN 7   EN foreseen in the draft budget. The adjust ment shall take place according to the 
procedure set out in Article 4. 
3. Contributions shall be expressed and paid in EUR.  4. To this end, each EFTA State shall ope n with its Treasury, or the body it shall 
designate for this purpose, an account in EUR on behalf of the European 
Commission. 
5. Any delay in the entries in the account referred  to in paragraph 4 shall give rise to the 
payment of interest by the EFTA State con cerned at the rate a pplied by the European 
Central Bank for its main refinancing ope rations in EUR, plus one and a half 
percentage point. The reference rate shall be the one in force on 1 July, as published 
in the C series of the Official Journal of the European Union. 
Article 3 
Conditions for implementation 
1. The utilisation of the appropriations ar ising from the participation of the EFTA 
States shall take place in accordance with the provisions of the Financial Regulation. 
2. With regard to tendering procedures, calls for tender shall be open to all EC Member 
States as well as to all EFTA  States in so far as they involve financing on budgetary 
lines in respect of which the EFTA States are participating. 
Article 4 
Regularisation of EFTA contributio n in the light of implementation 
1. The contribution of the EFTA States, dete rmined for each budgetary line concerned, 
in accordance with the provisions of Artic le 82 of the Agreement, shall remain 
unchanged during the financia l year (n) in question. 
2. Following the closure of the accounts rela ting to each financial year, the European 
Commission shall, within the framework of the establishment of the annual accounts in the year (n+1), calcul ate the budget outturn of th e EFTA States, taking into 
account: 
(a) the amount of the contributions paid by the EFTA States in accordance with 
Article 2; 
(b) the amount of the EFTA States’ part in the total implementation figures of 
budget appropriations on the budget lines for which the participation of the 
EFTA States was agreed; 
(c) any sums covering Community related expenditure which the EFTA States 
cover individually or payments made  by EFTA States in kind (e.g. 
administrative support). 
EN 8   EN 3. All sums recovered from third parties under each budget line for which the 
participation of the EFTA States was agre ed shall be treated as assigned revenues 
within the same budget line in accordance with Article 18(1)(f ) of the Financial 
Regulation. 
4. The regularisation of the contribution of th e EFTA States for the financial year (n), 
based on the budget outturn, shall be made w ithin the framework of the call for funds 
for the financial year (n+2) and be base d on the final breakdown between the EFTA 
States in the year (n). 
5. Complementary rules for the implementation of paragraphs 1 and 4 shall be adopted 
as necessary by the EEA Joint Committee. This shall apply in particular for 
Community expenditure to be borne by each EFTA State individually or for their in 
kind contributions. 
Article 5 
Information 
1. The European Commission shall provide  the Standing Committee of the EFTA 
States, at the end of each quarter, with an extract fr om its accounts showing, with 
regard both to receipts and expenditure, the situation concerning the implementation 
of the programmes and other actions in  which the EFTA States participate 
financially. 
2. Following the closure of the financial year (n), the European Commission shall 
communicate to the Standing Committee of the EFTA States the data concerning the programmes and other actions in which th e EFTA States part icipate financially, 
which appear in the relevant volume of the annual accounts dr awn up in accordance 
with the provisions of Articles 126 and 127 of the Financial Regulation. 
3. The European Commission shall provide  the Standing Committee of the EFTA 
States with such other financial informati on as the latter may reasonably request as 
regards the programmes and other actions in which they participate financially. 
Article 6 
Control 
1. The control of the determination and of the availability of all income as well as the 
control of the commitment and of the sche duling of all expenditure corresponding to 
the participation of the EFTA States shall take place in accordance with the 
provisions of the Treaty establishing th e European Community, of the Financial 
Regulation and of the applicable regulations in the fields referred to in Article 76 and 
78 of the Agreement. 
2. Appropriate arrangements shall be establis hed between the auditing authorities of the 
European Commission and of the EFTA States  with a view to facilitating the control 
of income and expenditure corresponding to the particip ation of EFTA States in 
Community activities in acco rdance with paragraph 1. 
EN 9   EN Article 7 
GDP figure to be taken into consideration  to calculate the proportionality factor 
The GDP data at market prices referred to  in Article 82 of th e Agreement shall be 
those published as a result of the implemen tation of Article 76 of the Agreement.’