COft/MISSION OF THE EUROPEAN COMMUNITIES 
COM(92) 495 final 
Brussels, 27 November 1992 
." ?îWmê Proposal for a 
COUNCIL REGULATION (EEC) 
concerning arrangements for implementing 
the Agreement on the European Economic Area 
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(presented by the Commission) 
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Explanatory note 
1. On 2 May 1992 the Agreement on the European Economic Area was signed 
by the European Community, its Member States and the EFTA States. The 
procedures for ratification of the Agreement are well advanced and it 
is expected that the Agreement can enter into force on 1 January 1993. 
The European Parliament gave its approval to the Agreement on 
28 October. As soon as the ratification instruments are received from 
all Member states, the Council will formally conclude the Agreement on 
behalf of the Community. 
2. In addition, the Community must now determine certain modalities for 
its internal purposes to provide an operational basis for the 
implementation of the Agreement on the EEA, and in particular to 
ensure that rights under the Agreement can be used and obligations can 
be fulfilled. 
3. The present proposal included modalities through which the Community 
can put into practice the following provisions of the EEA Agreement: 
- articles 112 to 114 on safeguard measures 
articles 2.1 (e), 53 to 60 on competition rules 
consultation with EFTA states within the Banking Advisory 
Committee and the EC Insurance Committee (agreed in an exchange of 
letters between the Commission and the EFTA chief negotiator) 
article 4.1 of Protocol 38 on the financial mechanism. 
4. The common position of the Community for the purposes of the EEA Joint 
Committee will be determined according to the existing internal 
Community rules. Therefore no special article on this matter has been 
inserted in the Regulation. 
5. The EEA Agreement allows the Contracting Parties to take appropriate 
safeguard measures unilaterally under certain circumstances and 
subject to specific conditions and procedures. In addition, it 
provides for the other Contracting parties to take proportionate 
rebalancing measures if the initial safeguard measures were to disturb 
the balance of rights and obligations under the Agreement. 
In Articles 1, 2 and 3 of the proposed Regulation the modalities for 
determining a Community position in either case are laid down. 
6. In the area of competition, both the Commission and the EFTA 
Surveillance Authority (ESA) have clearly described surveillance tasks 
under the EEA Agreement. 
Article 4 of the proposed Regulation ensures that the Commission has 
equivalent powers under the EEA Agreement as it has under the Treaty 
of Rome. Article 5 stipulates how Member States shall be associated 
with the surveillance tasks of the Commission and the ESA, as had been 
agreed previously in an internal declaration by the Commission and the 
Member states. 
s 
7. For the implementation of the EEA Agreement as regards financial 
Services, the EFTA States have been grated the right to be consulted 
in the context of meetings of the Banking advisory committee and the 
Insurance Committee. 
Article 5 of the proposed Regulation determines that the chairman of 
both committees and the vice-chairman of the Banking advisory 
committee shall be associated with these consultations. 
8. The EEA Agreement includes a financial mechanism which will be 
financed by the EFTA States. The EC Member States who will benefit 
from loans and grants from this fund have been determined in the 
Agreement. 
"Article 7 of the Regulation lays down the modalities for distribution 
of funds between the beneficiary countries, on the understanding that 
the allocation of these funds is specifier to the EEA and does not 
prejudice in any way the criteria applicable to Community Funds." 
9. Finally, Articles 8 and 9 of the proposed regulation determine that 
Member States are obliged to take all necessary measures for the 
implementation of the Agreement and synchronize the application of the 
Regulation with the EEA Agreement itself. 
10. From this last article and from the timetable for the entry into force 
of the EEA Agreement it is clear that the present regulation has be to 
adopted by the council urgently. 
V 
Proposal for a Council Regulation (EEC) No .. 
of ... 
concerning arrangements for implementing 
the Agreement on the European Economic Area 
The council of the European communities, 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Article 113 and 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
whereas an Agreement on the European Economic Area between the European 
Economic Community, the European Coal and Steel Community and their Member 
States, on the one hand, and the EFTA States, on the other, hereinafter 
referred to as "the EEA Agreement", was signed in Oporto on 2 May 1992; 
Whereas it is necessary to establish the arrangements for implementing 
various provisions of the EEA Agreement; 
Whereas it is necessary to lay down the procedures for putting into effect 
the safeguard clauses provided for in Articles 112 and 114 of that 
Agreement; 
Whereas implementing rules must also be provided for in the field of 
competition to enable the principles governing the application of 
competition law, on the basis of Articles 85 and 86 of the EEC Treaty, to be 
applied mutatis mutandis to the EEA; 
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Whereas, given the nature of the Banking Advisory Committee and the 
Insurance Committee, specific rules should be laid down for consulting them; 
Whereas, in accordance with the EEA Agreement, a Financial Mechanism has 
been established by the EFTA States; whereas it is necessary to lay down the 
method for determining the allocation of grants and interest rebates on 
loans to each recipient Member State in accordance with Protocol 38 of the 
EEA Agreement; whereas this allocation is specific to the EEA framework and 
the criteria chosen in no way prejudice the criteria applicable to Community 
Funds; 
Whereas the Agreements concluded by the Community bind its institutions and 
its Member States; whereas the latter must therefore take any measures 
necessary to enable the Community to fulfil its obligations under the EEA 
Agreement; 
Whereas it is necessary to adopt implementing measures to achieve, in the 
functioning of the single market, one of the goals of the Community; whereas 
the Treaty has not provided for the powers required for this purpose, 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. where a Member state requests the Commission to apply safeguard 
measures as provided for in Articles 112 or 114 of the Agreement, it 
shall provide the Commission, in support of its request, with the 
information needed to justify it. 
If the Commission decides not to apply safeguard measures, it shall 
inform the Council and the Member States accordingly within five 
working days of receipt of the request from the Member State. 
Any Member State may refer this decision of the Commission to the 
Council within ten working days of its notification. 
If the Council, acting by a qualified majority, indicates its 
intention to adopt a different decision, the commission shall inform 
the EFTA States thereof forthwith and shall notify them of the opening 
of consultations within the Joint Committee as provided for in 
Article 113 of the Agreement. 
The Council, acting by a qualified majority, may take a different 
decision within twenty working days of the conclusion of the 
consultations with the EFTA States within the Joint Committee. 
2. The Commission shall be assisted by a committee (hereinafter referred 
to as the "Committee") composed of representatives of the Member 
States and chaired by a representative of the Commission. 
The Committee shall meet when convened by its chairman. The latter 
shall communicate any appropriate information to the Member States at 
the earliest opportunity. 
3. Where the Commission, on its own initiative or at the request of a 
Member state, decides that the safeguard measures provided for in 
Articles 112 or 114 of the Agreement should be applied: 
it shall inform the Member States forthwith if acting on its own 
initiative or, if it is responding to a Member State's request, 
within five working days of receipt of that request, 
1 
it shall consult the Committee, 
- at the same time it shall inform the EFTA States and notify the 
Joint committee of the opening of consultations as referred to in 
Article 113 of the Agreement, 
at the same time it shall provide the Joint Committee with all the 
information necessary for these consultations. 
4. In any event, the consultations within the Joint Committee shall be 
deemed to be completed thirty days after the notification referred to 
in the fourth subparagraph of paragraph 1 and in paragraph 3. 
At the end of the consultations or on expiry of the period of thirty 
days, and if no other arrangement proves possible, the commission, 
after consulting the Committee, may take appropriate measures to 
implement Articles 112 and 114 of the Agreement. 
5. The decision referred to in paragraph 4 shall be notified forthwith to 
the Council, the Member States and the EFTA States; it shall also be 
notified to the Joint Committee. 
The decision shall be immediately applicable. 
6. Any Member State may refer the Commission decision, referred to in 
paragraph 4 to the Council within ten working days of receiving 
notification of the decision. 
7. If the Commission has not taken a decision within the meaning of the 
second subparagraph of paragraph 4 within ten working days of the end 
of the consultations with the Joint committee or, as the case may be, 
the end of the period of thirty days referred to in that paragraph, 
any Member state which has referred the matter to the commission in 
accordance with paragraph 3 may refer it to the Council. 
y 
8. In the cases referred to in paragraphs 6 and 7 the Council, acting by 
a qualified majority, may adopt a different decision within two 
months. 
Article 2 
1. Where exceptional circumstances arise within the meaning of 
Article 113(3) of the Agreement, the Commission may take immediate 
safeguard measures in the cases referred to in Articles 112 and 114 of 
the Agreement. 
2. If the Commission receives a request from a Member State, it shall 
take a decision thereon within five working days of receipt of the 
request. 
The Commission shall notify the Council and the Member States of its 
decision. 
3. Any Member state may refer the Commission's decision to the Council in 
accordance with the procedure provided for in Article 2(6). 
The procedure provided for in Article 2(7) and (8) shall be 
applicable. 
If the Commission has not taken a decision within the time limit 
mentioned in paragraph 2, any Member State which has referred the 
matter to the Commission may refer it to the Council in accordance 
with the procedures laid down in the first and second subparagraphs of 
this paragraph. 
Article 3 
By way of derogation from Articles 1 and 2, if the circumstances demand that 
measures are taken concerning agricultural products on the basis of 
Article 112 of the Agreement or on the basis of provisions in the Protocols 
or Annexes covering these products, such measures shall be taken according 
to procedures provided for by the rules establishing a common organization 
9 
of the agricultural markets, or in specific provisions adopted under 
Article 235 of the EEC Treaty and applicable to products resulting from the 
processing of agricultural products, provided that the conditions 
established under Article 113 of the Agreement are met. 
Article 4 
1. To enable the principles contained in Articles 1(2)(e) and 53 to 60 of 
the EEA Agreement to be put into effect, the Community rules giving 
effect to the principles covered by Articles 85 and 86 of the EEC 
Treaty and Council Regulation (EEC) No 4064/89 on the control of 
concentrations between undertakings shall apply mutatis mutandis. This 
shall also hold good for all the relevant provisions which the 
Community might adopt in the future in the field of competition. 
2. To enable the principle contained in Article 8(4} of Protocol 23 of 
the EEA Agreement to be put into effect, the Commission shall grant an 
authorization to the representatives of the EFTA Surveillance 
Authority to enable them to participate in the investigations referred 
to in that provision. 
Article 5 
1. When individual cases falling under Articles 53 and 54 of the EEA 
Agreement are referred to the EFTA Surveillance Authority in 
accordance with Article 56 of the EEA Agreement, the Commission shall 
carry out those tasks entrusted to it by Protocol 23 in close and 
permanent liaison with the competent authorities of the Member States. 
lo 
2. In particular, it shall forward to the Member States, without delay, 
the notifications, information and other documents forwarded by the 
EFTA Surveillance Authority in accordance with Articles 2, 3, 4, 6, 7 
and 8 of Protocol 23. 
3. Should the Member States wish to present formal written observations 
in particular individual cases dealt with by the EFTA Surveillance 
Authority, those observations shall be forwarded to the Commission, 
which will lend its good offices to find a commonly acceptable 
solution at Community level reflecting the unanimous opinion of the 
Member States which have forwarded observations. 
The Commission shall present the Community position, once it is 
defined, to the EFTA Surveillance Authority. 
If no such position has been established within thirty days of the 
date referred to in Article 2 of Protocol 23, the observations of the 
Member states and the Commission shall be forwarded together by the 
Commission to the EFTA Surveillance Authority. 
4. Notwithstanding the application of paragraph 3, Member States may 
participate in meetings of the EFTA Advisory Committee in accordance 
with Protocol 23. 
Article 6 
If, in order to ensure that the Agreement functions properly, the EFTA 
States are consulted on draft measures which the Commission proposes to take 
when exercising its executive powers, in spheres in which the Banking 
Advisory Committee and the Insurance Committee are competent, the Chair and 
Vice-Chair of those Committees shall be associated with such consultation. 
-M 
Article 7 
1. Pursuant to Article 4.1 of Protocol 38 of the EEA Agreement, the 
Commission shall determine, on behalf of the Community, the share of 
each beneficiary region in the overall level of financial assistance 
from the Financial Mechanism provided for in Part VIII of the EEA 
Agreement. These shares shall be determined for a five-year period in 
the light of the beneficiary regions• relative level of economic 
development and population size and of other relevant factors. 
2. The Commission shall communicate its decision to the Council and 
thereafter to the EFTA States and to the European Investment Bank at 
the earliest opportunity after the adoption by the Council of this 
Regulation. 
3. The annual commitments in individual regions shall take into account 
the rate at which projects are presented for financing, as well as the 
total annual commitments provided under Protocol 38 of the EEA 
Agreement. The Commission shall make the necessary arrangements with 
the EIB and the EFTA Financial Mechanism Committee to ensure that the 
annual commitments to individual regions do not prejudice the five-
year shares as determined under paragraph 1 above. 
Article 8 
The Member States shall take any measures necessary to ensure that 
obligations deriving from the EEA Agreement for the Community are fulfilled. 
Article 9 
This Regulation shall enter into force on the day that the EEA Agreement 
enters into force. 
This Regulation shall be binding in its entirety and directly applicable in 
all Member States. 
Done at Brussels, 
For the Council 
The President 

ISSN 0254-1475 
COM(92) 495 final 
DOCUMENTS 
EN 10 
Catalogue number : CB-CO-92-512-EN-C 
ISBN 92-77-49712-2 
Office for Official Publications of the European Communities 
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