EN Official Journal of the European Union L 52/54

DECISION OF THE STANDING COMMITTEE OF THE EFTA STATES

No 4/2004/SC

of 3 June 2004

establishing a Financial Mechanism Committee

THE STANDING COMMITTEE OF THE EFTA STATES,

Having regard to the Agreement on the European Economic Area as adjusted by the Protocol adjusting the Agreement on the European Economic Area (hereinafter referred to as the EEA Agreement),

Having regard to the Agreement on the participation of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic in the European Economic Area (hereinafter referred to as the EEA Enlargement Agreement),

Having regard to Protocol 38a on the EEA Financial Mechanism inserted into the EEA Agreement by the EEA Enlargement Agreement,

Having regard to the Agreement between the Kingdom of Norway and the European Community on a Norwegian Financial Mechanism for the period 2004 to 2009,

Having regard to the Decision of the Standing Committee of the EFTA States No 4/2003/SC of 4 December 2003 establishing an EEA Financial Mechanism Interim Committee,

Having regard to the Decision of the Standing Committee of the EFTA States No 1/2004/SC of 5 February 2004 establishing an Office for the EEA Financial Mechanism and the Norwegian Financial Mechanism,

HAS DECIDED AS FOLLOWS:

Article 1

A Financial Mechanism Committee (hereinafter referred to as the Committee) shall be established and replace the EEA Financial Mechanism Interim Committee as soon as each EEA EFTA State has appointed its members. The Committee shall manage the EEA Financial Mechanism.

Article 2

The Committee shall adopt the rules and procedures for the implementation of the EEA Financial Mechanism and submit them to the Standing Committee for approval, as well as take all decisions necessary for its proper functioning.

Article 3

The Office for the EEA Financial Mechanism and the Norwegian Financial Mechanism shall serve as a secretariat to the EEA Financial Mechanism Committee.

Article 4

Each EFTA State, party to the EEA Agreement, shall be represented on the Committee and have one vote.

Article 5

1. Decisions by the Committee shall be taken by unanimous vote. Decisions shall be regarded as taken unanimously if no member casts a negative vote.

2. However, a decision to reject a grant shall be regarded as taken if at least one member votes for its rejection.

3. Other matters, on which the Committee does not agree unanimously, may be referred to the Standing Committee of the EFTA States.

Article 6

1. On the basis of the principle of cost sharing, established by a decision of the Standing Committee, the Financial Mechanism Committee shall, at the beginning of each financial year of the commitment period (2004 to 2009), calculate the share of each annual tranche to be made available for commitment by each EEA EFTA State to the EEA Financial Mechanism.

2. Calls for initial payments and subsequent replenishments shall be issued by the Director of the Office for the EEA Financial Mechanism and the Norwegian Financial Mechanism.

Article 7

The Committee shall regularly report on its activities and on the operation of the EEA Financial Mechanism to the Standing Committee of the EFTA States. The Committee shall annually submit a report to the Standing Committee.

Article 8

The Committee shall adopt its own rules of procedure.

Article 9

This Decision shall remain in force until all obligations of the EEA Financial Mechanism have been fulfilled.

Article 10

This Decision shall take immediate effect.

Article 11

This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Union.