Proposal for a Council Decision concerning the provisional application of the Agreement on the participation of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the European Economic Area and the provisional application of four related agreements.
Date: 2004-02-18
Institutions: European Commission
Subjects: Baltic States, Central and Eastern Europe, Cyprus, European Economic Area, Malta, accession to an agreement, agreement (EU), enlargement of the Union

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.2.2004 
COM(2004) 113 final 

Proposal for a 

COUNCIL DECISION 

concerning the provisional application of the Agreement on the participation of the 
Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of 
Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the 
Republic of Poland, the Republic of Slovenia and the Slovak Republic in the European 
Economic Area and the provisional application of four related agreements. 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
  
EXPLANATORY MEMORANDUM 

Background 

Article  128  of  the  Agreement  on  the  European  Economic  Area  (EEA)  stipulates  that  all 
countries becoming members of the European Union must also apply to become contracting 
parties  to  the  EEA  Agreement.  Following  the  successful  conclusion  of  the  EU  enlargement 
negotiations  at  the  December  2002  Copenhagen  European  Council,  Cyprus,  the  Czech 
Republic,  Estonia,  Hungary,  Latvia,  Lithuania,  Malta,  Poland,  the  Slovak  republic  and 
Slovenia ("Acceding States") applied to join the EEA Agreement.  

To this end, the Council adopted a mandate on 9 December 2002 enabling the Commission to 
negotiate  for  the  Community  and  for  the  current  Member  States.  The  EEA  EFTA  States, 
Iceland, Liechtenstein and Norway negotiated individually, as did the Acceding States.  

The EEA enlargement negotiations were launched on 9 January 2003 and concluded on 3 July 
2003,  almost  three  months  later  than  originally  foreseen,  due  to  complications  in  the 
negotiations  concerning  quotas  for  marine  products.  The  Agreement  on  the  participation  of 
Acceding States in the European Economic Area (“EEA Enlargement Agreement”) together 
with four related agreements1 was, with some delay, signed  by all contracting parties on 14 
October 2003. 

EEA Enlargement Package 

The  EEA  Enlargement  Agreement  defines  the  amendments  to  the  EEA  Agreement  in  the 
context  of  EEA  enlargement.  The  bulk  of  the  amendments  originate  from  the  EU  Act  of 
Accession. The arrangements for the application of Community acquis by the Acceding States 
upon  accession  to  the  EU,  such  as  technical  adaptations  and  transitional  periods,  are  taken 
over  in  the  EEA  Agreement  from  the  Act  of  Accession.  The  EEA  EFTA  States  will  also 
contribute € 600 million over a five-year period to alleviating social and economic disparities 
in the enlarged EEA.  

The  elements  of  the  results  of  the  negotiations  that  are  not  incorporated  in  the  EEA 
Enlargement Agreement itself are contained in four related agreements: 

– 

– 

– 

– 

1 

A  bilateral  Norway-EC  agreement  on  a  Norwegian  financial  mechanism  of  €  567 
million for the period 2004-2009. 

An additional protocol to the EC-Iceland Free Trade Agreement of 1972. 

An additional protocol to the EC-Norway Free Trade Agreement of 1973. 

A bilateral EC-Norway agreement on certain agricultural products. 

2003/0160(AVC), 11902 ADD 1 
2003/0160(AVC), 11902 ADD 2 
2003/0160(AVC), 11902 ADD 2-CO 
2003/0160(AVC), 11902 ADD 3 
2003/0160(AVC), 11902 ADD 4 
2003/0160(AVC), 11902 ADD 5 
2003/0160(AVC), 11902 ADD 6 

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A provision according to which each of the above texts should enter into force simultaneously 
is included in the EEA Enlargement Agreement and in the four related agreements. 

Provisional Entry into Force 

The EU Accession Treaty is to enter into force on 1 May 2004. With the enlargement of the 
EU, the new Member States will automatically become part of the internal market. The EEA 
Agreement extends the internal market to the EEA EFTA States and it would be very difficult 
for  the  good  functioning  of  the  internal  market  were  the  enlargement  of  the  EU  and  the 
enlargement of the EEA not to take effect simultaneously. 

Although the  EEA Enlargement Agreement  and the four related agreements have  now been 
signed by all contracting parties, because of the delays incurred first during the negotiations 
and subsequently, in the signature process, it is to be expected that not all contracting parties 
will be able to ratify the EEA Enlargement Agreement and the four related agreements in time 
for them to enter into force on 1 May 2004. 

The Commission therefore proposes that the Community, pending its entry into force, decides 
to apply the EEA Enlargement Agreement and the four related agreements provisionally as of 
1  May  2004,  and  that  each  of  the  EEA  EFTA  States  does  likewise:  such  agreements  on 
provisional application would take the form of an exchange of letters between the European 
Community and each of the three EEA EFTA States. 

Conclusion 

The Commission proposes that the Council adopt the annexed decision, based on Article 310 
EC,  in  conjunction  with  Article  300(2)  EC,  on  the  provisional  application  of  the  EEA 
Enlargement Agreement and of the four related agreements as of 1 May 2004. 

3 

 
 
  
 
Proposal for a 

COUNCIL DECISION 

concerning the provisional application of the Agreement on the participation of the 
Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of 
Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the 
Republic of Poland, the Republic of Slovenia and the Slovak Republic in the European 
Economic Area and the provisional application of four related agreements. 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community  and  in  particular  Article 
310, in conjunction with Article 300(2), first paragraph, thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Article  128  of  the  Agreement  on  the  European  Economic  Area  (“EEA  Agreement”) 
stipulates that any European State becoming a member of the Community shall apply 
to become a Party to the EEA Agreement, and that the terms and conditions for such 
participation shall be subject to an agreement between the contracting parties and the 
applicant State. 

Following  the  successful  conclusion  of  the  EU  enlargement  negotiations,  the  Czech 
Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, 
the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic 
of  Poland,  the  Republic  of  Slovenia  and  the  Slovak  Republic  (“Acceding  States”) 
submitted applications to become parties to the EEA Agreement. 

On the basis of the authorisation given to the Commission on 9 December 2002, the 
EEA  enlargement  negotiations  were  concluded  on  3  July  2003  and  an  agreement 
between  Iceland,  Liechtenstein,  Norway  (“EEA  EFTA  States”),  the  Community,  the 
EU Member States and the Acceding States on the participation of the Acceding States 
in the European Economic Area (“EEA Enlargement Agreement”), together with four 
related agreements, was signed by the Contracting Parties on 14 October 2003. 

The  EU  Accession  Treaty  is  to  enter  into  force  on  1  May  2004,  on  which  date  the 
Acceding States will become fully integrated into the internal market. 

The  EEA  Agreement  extends  the  internal  market  to  the  EEA  EFTA  States  and, 
pending  the  completion  of  the  procedures  required  to  bring  the  EEA  Enlargement 
Agreement into force, it is necessary to provide for the provisional application from 1 
May  2004  of  the  EEA  Enlargement  Agreement  and  the  four  related  agreements  in 
order  to  maintain  the  good  functioning  of  the  internal  market  within  the  European 
Economic Area. 

4 

 
 
  
 
(6) 

The  Agreements  between  the  Community  and  each  of  the  EEA  EFTA  States  on 
provisional  application  in  the  form  of  an  Exchange  of  Letters  should  therefore  be 
approved, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreements in the form of an Exchange of Letters between the Community and each of 
the EEA EFTA States which provide for the provisional application as from 1 May 2004 of 
the EEA Enlargement Agreement and four related agreements is hereby approved on behalf of 
the Community. 

The  texts  of  the  Agreements  in  the  form  of  an  Exchange  of  Letters  are  attached  to  this 
Decision. 

Article 2 

The  President  of  the  Council  is  authorised  to  designate  the  person(s)  authorised  to  sign  the 
Agreements  in  the  form  of  an  Exchange  of  Letters  and  thus  express  the  Community's 
agreement to be bound by them. 

Article 3 

This Decision shall be published in the Official Journal of the European Union. 

Done at Brussels,  

For the Council 
The President 

5 

 
 
  
 
 
 
Annex  

AGREEMENTS 

in the form of an exchange of letters 

relating to the provisional application of the Agreement on the participation of the 
Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of 
Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the 
Republic of Poland, the Republic of Slovenia and the Slovak Republic in the European 
Economic Area and the provisional application of four related agreements 

6 

 
 
  
 
A: 

Letter of the European Community to the Republic of Iceland 

Sir, 

With reference to the Agreement on the participation of the Czech Republic, the Republic of 
Estonia,  the  Republic  of  Cyprus,  the  Republic  of  Hungary,  the  Republic  of  Latvia,  the 
Republic  of  Lithuania,  the  Republic  of  Malta,  the  Republic  of  Poland,  the  Republic  of 
Slovenia  and  the  Slovak  Republic,  in  the  European  Economic  Area  (“EEA  Enlargement 
Agreement”)  and  four  related  agreements  signed  on  14  October  2003,  I  have  the  honour  to 
inform  you  that  the  European  Community  is  prepared  to  apply  the  EEA  Enlargement 
Agreement and the Agreement between the European Community and the Republic of Iceland 
on an additional protocol to the Free Trade Agreement of 22 July 1972 between the European 
Economic Community and the Republic of Iceland, on a provisional basis, with effect from 1 
May 2004, provided that the Republic of Iceland is disposed to do the same. 

I should be obliged if you could confirm the Republic of Iceland’s agreement to the content of 
this letter. 

Please accept, Sir, the assurance of my highest consideration 

For the European Community 

B: 

Letter of the Republic of Iceland to the European Community 

Sir, 

I have the honour to acknowledge receipt of and confirm the Republic of Iceland’s agreement 
with your letter of today’s date, which reads as follows: 

“With  reference  to  the  Agreement  on  the  participation  of  the  Czech  Republic,  the 
Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic 
of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, 
the Republic of Slovenia and the Slovak Republic, in the European Economic Area 
(“EEA Enlargement Agreement”) and four related agreements signed on 14 October 
2003, I have the honour to inform you that the European Community is prepared to 
apply  the  EEA  Enlargement  Agreement  and  the  Agreement  between  the  European 
Community and the Republic of Iceland on an additional protocol to the Free Trade 
Agreement  of  22  July  1972  between  the  European  Economic  Community  and  the 
Republic of Iceland, on a provisional basis, with effect from 1 May 2004, provided 
that the Republic of Iceland is disposed to do the same.” 

Please accept, Sir, the assurance of my highest consideration 

For the Republic of Iceland 

7 

 
 
  
 
 
 
 
 
 
C: 

Letter of the European Community to Principality of Liechtenstein 

Sir, 

With reference to the Agreement on the participation of the Czech Republic, the Republic of 
Estonia,  the  Republic  of  Cyprus,  the  Republic  of  Hungary,  the  Republic  of  Latvia,  the 
Republic  of  Lithuania,  the  Republic  of  Malta,  the  Republic  of  Poland,  the  Republic  of 
Slovenia  and  the  Slovak  Republic,  in  the  European  Economic  Area  (“EEA  Enlargement 
Agreement”)  and  four  related  agreements  signed  on  14  October  2003,  I  have  the  honour  to 
inform  you  that  the  European  Community  is  prepared  to  apply  the  EEA  Enlargement 
Agreement on a provisional basis, with effect from 1 May 2004, provided that the Principality 
of Liechtenstein is disposed to do the same. 

I should be obliged if you could confirm the Principality of Liechtenstein’s agreement to such 
provisional application. 

Please accept, Sir, the assurance of my highest consideration 

For the European Community  

D: 

Letter of the Principality of Liechtenstein to the European Community 

Sir, 

I have the honour to acknowledge receipt of and confirm the Principality of Liechtenstein’s 
agreement with your letter of today’s date, which reads as follows: 

“With  reference  to  the  Agreement  on  the  participation  of  the  Czech  Republic,  the 
Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic 
of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, 
the Republic of Slovenia and the Slovak Republic, in the European Economic Area 
(“EEA Enlargement Agreement”) and four related agreements signed on 14 October 
2003, I have the honour to inform you that the European Community is prepared to 
apply  the  EEA  Enlargement  Agreement  on  a  provisional  basis,  with  effect  from  1 
May  2004,  provided  that  the  Principality  of  Liechtenstein  is  disposed  to  do  the 
same.” 

Please accept, Sir, the assurance of my highest consideration 

For the Principality of Liechtenstein 

8 

 
 
  
 
 
 
 
 
 
E. 

Letter of the European Community to the Kingdom of Norway 

Sir, 

With reference to the Agreement on the participation of the Czech Republic, the Republic of 
Estonia,  the  Republic  of  Cyprus,  the  Republic  of  Hungary,  the  Republic  of  Latvia,  the 
Republic  of  Lithuania,  the  Republic  of  Malta,  the  Republic  of  Poland,  the  Republic  of 
Slovenia  and  the  Slovak  Republic,  in  the  European  Economic  Area  (“EEA  Enlargement 
Agreement”)  and  four  related  agreements  signed  on  14  October  2003,  I  have  the  honour  to 
inform  you  that  the  European  Community  is  prepared  to  apply  the  EEA  Enlargement 
Agreement and the following three related agreements: 

– 

– 

– 

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

Agreement  between  the  European  Community  and  the  Kingdom  of  Norway  on  an 
additional  protocol  to  the  Free  Trade  Agreement  of  14  May  1973  between  the 
European Economic Community and the Kingdom of Norway, 

Agreement in the form of an exchange of letters between the European Community 
and the Kingdom of Norway concerning certain agricultural products, 

on a provisional basis, with effect from 1 May 2004, provided that the Kingdom of Norway is 
disposed to do the same. 

I  should  be  obliged  if  you  could  confirm  the  Kingdom  of  Norway’s  agreement  to  such 
provisional application. 

Please accept, Sir, the assurance of my highest consideration 

For the European Community 

9 

 
 
  
 
F: 

Letter of the Kingdom of Norway to the European Community 

Sir, 

I  have  the  honour  to  acknowledge  receipt  of  and  confirm  the  Kingdom  of  Norway’s 
agreement with your letter of today’s date, which reads as follows: 

“With  reference  to  the  Agreement  on  the  participation  of  the  Czech  Republic,  the 
Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic 
of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, 
the Republic of Slovenia and the Slovak Republic, in the European Economic Area 
(“EEA Enlargement Agreement”) and four related agreements signed on 14 October 
2003, I have the honour to inform you that the European Community is prepared to 
apply the EEA Enlargement Agreement and the following three related agreements: 

– 

– 

– 

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

Agreement between the European Community and the Kingdom of Norway on 
an additional protocol to the Free Trade Agreement of 14 May 1973 between 
the European Economic Community and the Kingdom of Norway, 

Agreement  in  the  form  of  an  exchange  of  letters  between  the  European 
Community  and  the  Kingdom  of  Norway  concerning  certain  agricultural 
products, 

on a provisional basis, with effect from 1 May 2004, provided that the Kingdom of 
Norway is disposed to do the same.” 

Please accept, Sir, the assurance of my highest consideration 

For the Kingdom of Norway 

10