COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 466 final 
Brussels, 5 October 1993 
Ir' <-/*BSHrt Amended 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 pursuant to Article 149(3) 
of the EEC-Treaty) 
EXPLANATORY MBMORANPl[M 
1. The revised proposal amends the proposal for a Council Regulation (EEC) 
concerning arrangements for implementing the Agreement on the European 
Economic Area1. 
The deliberations on the existing proposal in the competent working group of 
the Council and in the various Committees of the European Parliament have 
led the Commission to review its proposal and to submit this revised version. 
2. The existing proposal does not contain any specific provision with regard to 
the procedure to be followed in order to establish the Community position in 
the EEA Joint Committee leaving this matter to be dealt with according to the 
existing internal Community rules 2. 
However, the discussions have shown that the practical consequences of the 
application of the "existing rules" would imply uncertainties, unnecessary risks 
and avoidable delays: in particular a parallel procedure, one for the "internal" 
and one for the "external" aspect, would imply the risk that matters which 
were internally settled are reopened in the external context; additional delays 
due to protracted internal procedures could weaken the Community's position 
vis-à-vis the EFTA States in respect of the enforcement of the principle, 
fundamental to the EEA Agreement and constancy emphasized by the 
Community, that the EFTA States have to take over new acquis and that as 
quickly as possible. 
3. In fact, the decisions to be adopted by the EEA Joint Committee will, in the 
vast majority of cases, concern a pure and simple "extension" of a 
Community act to the EEA via an amendment of the relevant Annex to the 
EEA Agreement. Such decision will come at the end of an extensive 
information and consultation process with the EFTA States during which the 
latter will have had the opportunity throughout the Community internal 
decision-making procedure to give their opinion on the content of the EC act. 
The Council, when adopting the EC act, will, therefore, be aware of the 
EFTA position. Once adopted, the EC act will be transmitted as soon as 
OJ No C 339, 22.12.1992, p.11 
COM (92) 0495, Explanatory Note, point 4 
possible to the EEA Joint Committee where the decision on its extension 
should, in principle, be a mere formality in the light of the preceding 
information/consultation exercise and of the objective of the EEA Agreement 
which is to ensure homogeneity throughout the EEA. 
4. As a consequence, the objectives of the EEA Agreement necessitate a simple 
and rapid Community-internal procedure which reflects the mechanisms and 
objectives of this Agreement and allows the Community to fulfil its obligation 
in view of the preservation of homogeneity throughout the EEA without 
undue delay. 
5. The above requirements militate in favour of a general mandate from the 
Council to the Commission for all cases where the Community position is to 
consist in a simple extension of EC acquis to the EEA. 
Article 1(1) of the revised proposal provides that whenever the Council adopts 
a legislative act in an area covered by the EEA Agreement, the Commission 
is mandated to put forward, in the EEA Joint Committee, the Community 
position with regard to the extension of the EC act in question to the extent 
that this act, except for any adaptations of a purely technical nature, is, as 
such, transferred into the EEA framework. 
6. Where the Commission is competent under Community law to adopt legal acts 
it must also have the right to express the Community position in trie EEA Joint 
Committee. Consequently Article 1(2) of the revised proposal provides for a 
mandate to the Commission to this effect. 
7. In all other cases not covered by Article 1 the Community position to be taken 
in the EEA Joint Committee or in the EEA Council is to be established in 
accordance with the procedures laid down in the corresponding Treaty 
provisions. This applies in particular to all future decisions of the EEA Joint 
Committee which go beyond a simple extension of EC acquis to the EEA, 
(such as decisions concerning EFTA participation in EC programmes in the 
area of flanking policies, dispute settlement, exceptional deviations from the 
acquis). 
8. Article 2 of the revised proposal provides for a simplified procedure as regards 
the involvement of the European Parliament. The Parliament will he informed 
and its opinion requested on the "EEA extension" of a Community act 
whenever it receives the EC act for consultation. 
9. Article 3 of the draft revised proposal lays down the specific internal 
Community procedure for the adoption of the "interim acquis package". This 
package will contain all the Community acts relevant to the EEA published 
between 1 August 1991, the cut-off date for the EEA Agreement signed in 
Oporto on 2 May 1992, and a date as close as possible to its entry into force. 
These acts are not yet contained in the EEA Agreement. The aim will be to 
integrate this growing body of Community measures (already some 300 in 
3 
number) into the EEA Agreement by decision of the EEA Joint Committee. 
10. Apart from these changes and a reference to the Adjusting Protocol (reflecting 
the non-participation of Switzerland in the EEA), a small amendment has been 
made in Article 9 to provide that in the case of the Insurance Committee, 
which has no vice-president, the Bureau will be associated together with the 
president to the consultations with the EFTA States. 
11. In the light of all these elements it appears appropriate to request the 
Parliament's assent to the Regulation. The revised proposal is therefore based 
on Article 238 of the EEC Treaty instead of Articles 113 and 235. 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
concerning arrangement» for implementing 
the Agreement on the European Economic Area1 
The Council of the European communities, 
Having regard to the Treaty establishing the European Economic 
community, and in particular Article 238 thereof, 
Having regard to the proposal from the commission, 
Having regard to the assent of the European Parliament, 
Whereas an Agreement on the European Economie Area between the European 
Economic Community, the European Coal and Steel community and their 
Member states, on the one hand, and the ETTA states, on the other, was 
signed in Oporto on 2 May 1992; 
Whereas, following Switzerland's non-ratification of the EEA Agreement, 
the European Community, the European coal and steel Community and their 
Member states, on the one hand, and the Republic of Austria, the 
Republic of Finland, the Republic of Iceland, the principality of 
Liechtenstein, the Kingdom of Norway and the Kingdom of Sweden, on the 
other, signed a Protocol amending the Agreement on the European 
Economic Area on 17 March 1993; whereas the Agreement and the Protocol 
are hereinafter referred to as "the EEA Agreement"; 
whereas it is necessary to establish the arrangements for implementing 
various provisions of the EEA Agreement; 
whereas the EEA Agreement provides for an EEA Joint Committee with 
decision-making powers; whereas the community will have to state its 
views within that committee and it is therefore necessary to lay down 
rules of procedure for deciding on the position the ccanmrmlty will 
adopt; 
whereas provisional rules of procedure must be laid down to incorporate 
the acquis communautaire as close as possible to the date of entry into 
force of the ££A Agreement, in good time to secure the objectives of 
the EEA Agreement, namely to establish a dynamic and homogenous 
European Economic Area; 
whereas it is neces&ary to lay down the procedures for putting into 
effect the safeguard clauses provided for in Articles 112 and 114 of 
the £EA Agreement; 
OJ C No 339, 22.12.1992, p. 11. 
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; 
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; 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. Where the Council adopts Community legislation on a matter covered 
by the EEA Agreement, the Commission is authorized to state the 
Community's position on the EEA Joint Committee's decision to 
extend the said legislation to the European Economic Area by virtue 
of an amendment to an Annex or to Protocols 21 and 47 of the EEA 
Agreement, where that decision simply extends the said legislation 
to the European Economic Area, subject to any necessary technical 
amendments. 
2. Paragraph 1 shall also apply in cases where it is the Commission 
which is responsible for adopting Community legislation. 
Article 2 
Where a proposal for Community legislation on a matter covered by the 
EEA Agreement is sent to the European Parliament, Parliament shall 
simultaneously be requested to deliver an opinion on its extension to 
the EEA. 
Article 3 
As an interim measure, the Community's position on the amendment of the 
Annexes and of Protocol 47 of the EEA Agreement in respect of the 
extension to the EEA of the acquis communautaire, adopted until 
1993, shall be decided by the Council, acting unanimously on 
a proposal from the commission and after consulting the European 
Parliament. 
Article 4 
1. Where a Member State requests the Commission to apply safeguard 
measures as provided for in Articles 112 or 114 of the EEA 
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 10 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 20 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, 
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 EEA 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 30 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 30 
days, if no other arrangement proves possible, the Commission, 
after consulting the Committee, may take appropriate measures to 
implement Articles 112 and 114 of the EEA 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 10 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 10 working days of 
the end of the consultations with the Joint Committee or, as the 
case may be, the end of the period of 30 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. 
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 5 
1. where exceptional circumstances arise within the meaning of 
Article 113(3) of the EEA 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 4(6). 
The procedure provided for in Article 4(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 6 
By way of derogation from Articles 4 and 5, if circumstances require 
that measures be taken concerning agricultural products on the basis of 
Article 112 of the EEA Agreement or on the basis of the Protocols or 
Annexes covering these products, such measures shall be taken according 
to procedures provided for by the rules establishing a common 
organization 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 EEA Agreement are 
met. 
Article 7 
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 set out in 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 any 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 
and Protocol 24 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 8 
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. 
2. In particular, it shall forward to the Member States, without 
delay, notifications, information and any 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 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 30 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 9 
it, in order to ensure that the EEA 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. 
Article 10 
1. Pursuant to Article 4(l)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 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 11 
The Member States shall take any measures necessary to ensure that 
obligations deriving from the EEA Agreement for the Community are 
fulfilled. 
Article 12 
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 
10 
ISSN 0254-1475 
COM(93) 466 final 
DOCUMENTS 
EN 10 
Catalogue number : CB-CO-93-512-EN-C 
ISBN 92-77-59652-X 
Office for Official Publications of the European Communities 
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