Proposal for a Council Decision on the conclusion, on behalf of the European Community, of an Agreement between the European Community and the Republic of Iceland, the Kingdom of Norway, the Swiss Confederation and the Principality of Liechtenstein on supplementary rules in relation to the External Borders Fund for the period 2007 to 2013
Date: 2009-10-09
Institutions: European Commission
Subjects: EFTA countries, European Community, border control, cooperation agreement, cooperation policy, external border of the EU, fund (EU), migratory movement

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.10.2009 
COM(2009)525 final 

2009/0148 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the conclusion, on behalf of the European Community, of an Agreement between the 
European Community and the Republic of Iceland, the Kingdom of Norway, the Swiss 
Confederation and the Principality of Liechtenstein on supplementary rules in relation 
to the External Borders Fund for the period 2007 to 2013 

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EXPLANATORY MEMORANDUM 

1. 

POLITICAL AND LEGAL BACKGROUND 

On  18  May  1999,  the  Council  of  the  European  Union  and  the  Republic  of  Iceland  and  the 
Kingdom  of  Norway  concluded  an  Agreement  concerning  those  states'  association  with  the 
implementation, application and development of the Schengen acquis.  

On 26 October 2004, the Council of the European Union, the European Community and the 
Swiss  Confederation  concluded  an  Agreement  concerning  the  Swiss  Confederation's 
association with the implementation, application and development of the Schengen acquis.  

On  21  June  2006,  a  Protocol  between  the  Council  of  the  European  Union,  the  European 
Community, the Swiss Confederation and the Principality of Liechtenstein on the accession of 
the Principality of Liechtenstein to the Agreement concluded by the Council of the European 
Union, the European Community and the Swiss Confederation on the Swiss Confederation's 
association  with  the  implementation,  application  and  development  of  the  Schengen  acquis 
was initialled. The Protocol was signed on 28 February 2008 and is expected to be concluded 
in 2009.  

For efficiency, and to avoid the need to conduct separate negotiations, Liechtenstein has been 
associated with the negotiations on its participation in the Fund before the conclusion of the 
Protocol. This Agreement will not apply to Liechtenstein until the date when the Protocol is 
put into effect.  

According to Article 11 of Decision No 574/2007/EC of the European Parliament and of the 
Council of 23 May 2007 establishing the External Borders Fund for the period 2007 to 2013 
as  part  of  the  General  programme  'Solidarity  and  Management  of  Migration  Flows'1 
(hereinafter  'the  Decision')  the  states  associated  with  the  implementation,  application  and 
development  of  the  Schengen  acquis  shall  participate  in  the  Fund  in  accordance  with  the 
provisions  of  the  Decision.  Moreover,  arrangements  shall  be  concluded  specifying 
supplementary  rules  necessary  for  such  participation,  including  provisions  ensuring  the 
protection  of  the  Community's  financial  interests  and  the  auditing  power  of  the  Court  of 
Auditors.  

The  Agreement  should  provide  for  the  application  of  rules  in  the  jurisdiction  of  Norway, 
Iceland,  Switzerland  and  Liechtenstein  aiming  at  enabling  the  Commission  to  assume  final 
responsibility  for  the  implementation  of  the  budget  of  the  Fund  in  these  states.  Neither  the 
Decision  nor  the  above-mentioned  Schengen  association  agreements  provide  for  such  rules. 
Following the authorization given by the Council to the Commission on 20 December 2007, 
negotiations  were  held  with  the  Republic  of  Iceland,  the  Kingdom  of  Norway,  the  Swiss 
Confederation  and  the  Principality  of  Liechtenstein.  The  negotiations  were  finalised  on  30 
June 2009 when the draft Agreement was initialled. 

Parties have agreed that this Agreement shall apply provisionally as from the day following 
that  of  its  signature,  without  prejudice  to  constitutional  requirements.  An  exception  to  this 

1 

OJ L 144, 6.6.2007, p.22. 

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principle  is  made  for  the  application  of  Article  6  on  the  enforceability  of  pecuniary 
obligations, which requires specific legislative action in the associated States. 

The Member States have been informed and consulted in the Frontiers Working Party and the 
Working Party on the European Free Trade Association (EFTA) within the Council.  

The  legal  basis  of  the  Agreement  is  Article  62(2)  in  conjunction  with  Article  300  of  the 
Treaty establishing the European Community.  

This, and the related proposal constitute the legal instruments for signature and conclusion of 
the Agreement. The Council will decide by qualified majority. The European Parliament will 
have  to  be  formally  consulted  on  conclusion  of  the  Agreement,  in  accordance  with  Article 
300(3) of the EC Treaty.  

2. 

OUTCOME OF THE NEGOTIATIONS  

The Commission considers that the objectives set by the Council in its negotiating directives 
have been attained and that the draft Agreement is acceptable to the Community.  

The final content of the draft Agreement can be summarised as follows:  

Purpose and scope 

As regards the rules aiming at enabling the Commission to assume final responsibility for the 
implementation  of  the  budget  of  the  Fund  in  these  states,  the  Agreement  deals  with  the 
following aspects of the financial management and control of the Fund: the principle of sound 
financial management, the principle on avoiding conflict of interest, the necessary measures 
resulting from the delegation of the implementation of EU funds to the associated States, the 
enforcement  of  pecuniary  obligations,  the  protection  of  the  financial  interests  of  the 
Communities against fraud, on-the-spot checks and inspections, the Court of Auditors, public 
procurement.  

Moreover,  the  Agreement  sets  out  arrangements  for  the  financial  contributions  from  these 
states  to  the  budget  of  the  Fund.  The  Agreement  lays  down  fixed  amounts  for  these 
contributions for the period 2009-2013. The advantage of fixed amounts is that it facilitates 
the  process  of  calculating  the  total  amount  of  annual  appropriations  available  for  the  Fund. 
The fixed amounts, however, are subject to a correction mechanism to be applied in the last 
year of the multiannual programme, bearing in mind the calculation methods based on GDP 
as laid down in the respective Schengen association agreements. Further, adjustment is made 
possible in case of a change in the total reference amount in Article 13(1) of the Decision or 
of changes to the annual appropriations foreseen in the text. Given the expected timing for the 
conclusion  of  this  Agreement,  the  contributions  for  2009  are  only  due,  as  exceptional 
contributions, in 2010. In the same vein, the allocations envisaged for 2009 for the associated 
countries, as communicated in July 2008, will be due, exceptionally, only in 2010. The timing 
for the payment of these contributions is also laid down.  

Lastly,  the  Agreement  sets  out  some  specific  arrangements  for  the  associated  States  on  the 
submission  of  programmes  and  reports,  in  the  light  of  the  delay  in  launching  their 
participation in the Fund.  

Declarations  

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One joint declaration is attached to the Agreement relating to the choice of Liechtenstein not 
to participate in the Fund, without prejudice to its obligations to contribute financially to the 
Fund,  it  having  being  designed  to  provide  for  burden  sharing  and  to  support  financially  the 
implementation of the Schengen acquis in the field of the external borders and visa policy.  

Moreover,  there  is  an  exchange  of  declarations  between  Norway  and  the  European 
Community  on  the  application  of  the  principle  of  direct  enforceability  of  decisions  by  the 
European  Community.  This  exchange  of  declarations  is  based  on  the  one  attached  to  the 
Schengen Association Agreement with Norway.  

3. 

CONCLUSIONS 

In the light of the above-mentioned results, the Commission proposes that the Council: 

–  decide  that  the  Agreement  be  signed  on  behalf  of  the  Community  and  authorise  the 
President of the Council to appoint the person(s) duly empowered to sign on behalf of the 
Community; 

–  approve,  after  consultation  of  the  European  Parliament,  the  attached  Agreement  between 
the European Community, and the Republic of Iceland, the Kingdom of Norway, the Swiss 
Confederation  and  the  Principality  of  Liechtenstein  on  supplementary  rules  in  relation  to 
the External Borders Fund for the period 2007 to 2013. 

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2009/0148 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the conclusion, on behalf of the European Community, of an Agreement between the 
European Community and the Republic of Iceland, the Kingdom of Norway, the Swiss 
Confederation and the Principality of Liechtenstein on supplementary rules in relation 
to the External Borders Fund for the period 2007 to 2013 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
62(2) in conjunction with the first sentence of the first subparagraph of Article 300(2) and the 
first subparagraph of Article 300(3) thereof,  

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

(3) 

According to Article 11 of Decision No 574/2007/EC of the European Parliament and 
of the Council of 23 May 2007 establishing the External Borders Fund for the period 
2007  to  2013  as  part  of  the  General  programme  'Solidarity  and  Management  of 
Migration  Flows3  the  third  countries  associated  with  the  implementation,  application 
and  development  of  the  Schengen  acquis  shall  participate  in  the  Fund  in  accordance 
with  its  provisions  and  arrangements  should  be  concluded  to  specify  supplementary 
rules necessary for such participation, including provisions ensuring the protection of 
the Community's financial interests and the power of audit of the Court of Auditors. 

Following  the  authorization  given  to  the  Commission  on  19  December  2007, 
negotiations  with  the  Republic  of  Iceland,  the  Kingdom  of  Norway,  the  Swiss 
Confederation and  the  Principality of Liechtenstein have been concluded on  30 June 
2009. 

In  accordance  with  Articles  1  and  2  of  the  Protocol  on  the  position  of  Denmark 
annexed to the Treaty on European Union and to the Treaty establishing the European 
Community,  Denmark  is  not  taking  part  in  the  adoption  of  this  Decision  and  is  not 
bound  by  it,  or  subject  to  application  thereof.  Since  this  Decision  builds  upon  the 
Schengen  acquis  under  the  provisions  of  Title  IV  of  Part  Three  of  the  Treaty 
establishing the European Community, Denmark shall, in accordance with Article 5 of 

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OJ C … 
OJ L144,6.6.2007, p.22 

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the same Protocol, decide within a period of six months after the Council has adopted 
this Decision whether it will implement it in its national law or not. 

(4) 

(5) 

(6) 

This Decision constitutes a development of the provisions of the Schengen acquis in 
which  the  United  Kingdom  does  not  take  part,  in  accordance  with  Council  Decision 
2000/365/EC of 29 May 2000 concerning the request of the United Kingdom of Great 
Britain  and  Northern  Ireland  to  take  part  in  some  of  the  provisions  of  the  Schengen 
acquis  and  the  subsequent  Council  Decision  2004/926/EC  of  22  December  2004  on 
the putting into effect of parts of the Schengen acquis by the United Kingdom of Great 
Britain and Northern Ireland4. The United Kingdom is therefore not taking part in its 
adoption and is not bound by itor subject to its application thereof. 

This Decision constitutes a development of the provisions of the Schengen acquis in 
which Ireland does not take part, in accordance with Council Decision 2002/192/EC of 
28 February 2002 concerning Ireland's request to take part in some of the provisions of 
the  Schengen  acquis.  Ireland  is  therefore  not  taking  part  in  its  adoption  and  is  not 
bound by it or subject to its application thereof. 

According to Council Decision …/…/EC of ../.. 2009, and pending its final conclusion 
at a later date, the Agreement has been signed on behalf of the European Community 
on … … 2009 and provisionally applied. 

(7) 

The Agreement should be concluded; 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreement between the European Community and the Republic of Iceland, the Kingdom 
of Norway, the Swiss Confederation and the Principality of Liechtenstein on supplementary 
rules in relation to the External Borders Fund for the period 2007 to 2013 is hereby approved 
on behalf of the European Community.  

The text of the Agreement and the related documents are attached to this Decision. 

Article 2  

The  President  of  the  Council  is  hereby  authorized  to  designate  the  person  empowered  to 
deposit  on  behalf  of  the  European  Community  the  instrument  of  approval  provided  for  in 
Article 13(2) of the Agreement in order to express the consent of the Community to be bound.  

Done at Brussels, 

For the Council  
The President  

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OJ L 395, 31.12.2004, p.70. 

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ANNEX 

Agreement 

between the European Community and the Republic of Iceland, the Kingdom of 
Norway, the Swiss Confederation and the Principality of Liechtenstein on 
supplementary rules in relation to the External Borders Fund for the period 2007 to 
2013 

THE EUROPEAN COMMUNITY, hereinafter referred to as 'the Community' 

and 

THE REPUBLIC OF ICELAND, hereinafter referred to as 'Iceland',  

THE KINGDOM OF NORWAY, hereinafter referred to as 'Norway',  

THE SWISS CONFEDERATION, hereinafter referred to as 'Switzerland' 

THE PRINCIPALITY OF LIECHTENSTEIN, hereinafter referred to as 'Liechtenstein',  

Hereinafter referred to as associated States 

Hereinafter referred to as 'the Parties' 

HAVING REGARD to the Agreement concluded by the European Union and the Republic of 
Iceland  and  the  Kingdom  of  Norway  concerning  the  association  of  those  States  with  the 
implementation, application and development of the Schengen acquis (hereinafter referred to 
as the Association Agreement with Norway and Iceland),  

HAVING  REGARD  to  the  Agreement  between  the  European  Union,  the  European 
Community  and  the  Swiss  Confederation  on  the  Swiss  Confederation's  association  with  the 
implementation, application and development of the Schengen acquis (hereinafter referred to 
as the Association Agreement with Switzerland), 

HAVING REGARD to the Protocol between the European Union, the European Community, 
the  Swiss  Confederation  and  the  Principality  of  Liechtenstein  on  the  accession  of  the 
Principality of Liechtenstein to the Agreement between the Council of the European Union, 
the  European  Community  and  the  Swiss  Confederation  on  the  Swiss  Confederation's 
association  with  the  implementation,  application  and  development  of  the  Schengen  acquis 
(hereinafter referred to as the Association Protocol with Liechtenstein), 

WHEREAS:  

(1) 

(2) 

The European Community established by Decision No 574/2007/EC of the European 
Parliament and of the Council the External Borders Fund for the period 2007 to 2013 
as part of the General Programme 'Solidarity and Management of Migration Flows' 
(hereinafter referred to as the Fund).  

That Decision constitutes a development of the Schengen acquis within the meaning 
of the Association Agreement with Norway and Iceland, the Association Agreement 
with Switzerland and the Association Protocol with Liechtenstein.  

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(3) 

(4) 

(5) 

Article  11  of  that  Decision  provides  that  the  third  states  associated  with  the 
implementation,  application  and  development of  the  Schengen  acquis  participate  in 
the Fund in accordance with its provisions and that arrangements shall be concluded 
to specify supplementary rules necessary for such participation, including provisions 
ensuring the protection of the Community's financial interests and the power of audit 
of the Court of Auditors.  

The  Fund  constitutes  a  specific  instrument  in  the  context  of  the  Schengen  acquis 
designed to provide for burden sharing and support financially the implementation of 
the  Schengen  acquis  in  the  field  of  external  borders  and  visa  policy  in  Member 
States.  

To facilitate the calculation of the annual allocations to the States participating in the 
Fund  and  the  multiannual  programming  exercise  for  the  associated  States,  this 
Agreement  defines  the  annual  financial  contributions  from  the  associated  States  in 
fixed amounts which are subject to a correction mechanism to be applied in the last 
year of the multiannual programme,  

HAVE AGREED AS FOLLOWS: 

Article 1 

Scope  

This Agreement sets out the supplementary rules necessary for the participation in the Fund of 
the  associated  States  in  accordance  with  Decision  No  574/2007/EC  of  the  European 
Parliament and of the Council establishing the External Borders Fund for the period 2007 to 
2013  as  part  of  the  General  Programme  'Solidarity  and  Management  of  Migration  Flows' 
(hereinafter referred to as the Decision).  

Article 2  

Financial management and control  

1. 

The  associated  States  shall  take  the  necessary  measures  to  ensure  the  compliance 
with the provisions relevant for the financial management and control which are laid 
down  in  the  Treaty  establishing  the  European  Community  (hereinafter  'the  EC 
Treaty') and in secondary Community law.  

2. 

The provisions referred to in paragraph 1 are the following ones:  

•  Articles  248,  paragraphs  1  to  3,  256,  274  and  280,  paragraphs  1  to  3  of  the  EC 

Treaty  

•  Articles  27,  28a,  52,  53,  point  b,  72(2)  and  95(2)  of  Council  Regulation  (EC, 
Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable 

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to the general budget of the European Communities5 (hereinafter referred to as the 
Financial Regulation); 

•  The  corresponding  provisions  of  Commission  Regulation  (EC,  Euratom)  No 
the 
2342/2002  of  23  December  2002 
implementation  of  Council  Regulation  (EC,  Euratom)  No  1605/2002  on  the 
Financial  Regulation  applicable 
the  European 
Communities6,  

laying  down  detailed  rules  for 

the  general  budget  of 

to 

•  Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning 
on-the-spot  checks  and  inspections  carried  out  by  the  Commission  in  order  to 
protect  the  European  Communities'  financial  interests  against  fraud  and  other 
irregularities7 and  

•  Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 
25  May  1999  concerning  investigations  conducted  by  the  European  Anti-Fraud 
Office (OLAF). 

•  The Parties may decide to amend this list by mutual agreement.  

3. 

The  associated  States  shall  apply  the  provisions  referred  to  in  paragraph  2  in  their 
territory in accordance with this Agreement.  

Article 3 

Respect for the principle of sound financial management 

The appropriations under the Fund spent in the territory of the associated States shall be used 
in accordance with the principle of sound financial management.  

Article 4 

Respect for the principle on conflict of interest 

All  financial  actors  and  any  other  person  involved  in  budget  implementation,  management, 
audit or control acting in the territory of the associated States shall be prohibited from taking 
any action which may bring their own interests into conflict with those of the Communities.  

5 

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OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regulation (EC, Euratom) No 1995/2006 (OJ 
L 390, 30.12.2006, p. 1). 
OJ L 357, 31.12.2002, p.1. Regulation as last amended by Regulation (EC, Euratom) No 478/2007 (OJ 
L 111, 28.4.2007, p. 13). 
OJ L 292, 15.11.1996, p. 2. 

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Article 5 

Obligations resulting from the delegation of the implementation  

The  associated  States  shall  take  all  the  legislative,  regulatory  and  administrative  or  other 
measures  necessary  for  protecting  the  Communities'  interests  in  accordance  with  the 
obligations laid down in Article 53, point b, and 95(2) of the Financial Regulation.  

Article 6 

Enforcement  

Decisions  taken  by  the  Commission  which  impose  a  pecuniary  obligation  on  persons  other 
than States shall be enforceable in the territory of the associated States.  

Enforcement  shall  be  governed  by  the  rules  of  civil  procedure  in  force  in  the  State  in  the 
territory  of  which  it  is  carried  out.  The  order  for  its  enforcement  shall  be  appended  to  the 
decision, without other formality than verification of the authenticity of the decision, by the 
national authority which the governments of the associated States shall respectively designate 
for this purpose and shall make known to the Commission. 

When  these  formalities  have  been  completed  on  application  by  the  Commission,  the  latter 
may  proceed  to  enforcement  in  accordance  with  the  national  law,  by  bringing  the  matter 
directly before the competent authority. 

Enforcement  may  be  suspended  only  by  a  decision  of  the  Court  of  Justice  of  the  European 
Communities.  However,  the  courts  of  the  State  concerned  shall  have  jurisdiction  over 
complaints that enforcement is being carried out in an irregular manner.  

Article 7 

Protection of the financial interests of the Communities against fraud 

1. 

As set out in Article 280 of the EC Treaty, the associated States shall 

(a) 

(b) 

(c) 

counter fraud and any other illegal activities affecting the financial interests of 
the Community through measures which shall act as a deterrent and be such as 
to afford effective protection;  

take the same measures to counter fraud affecting the financial interests of the 
Community as they take to counter fraud affecting their own financial interests; 
and  

coordinate  their  action  aimed  at  protecting  the  financial  interests  of  the 
Community with the Member States and the Commission.  

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2. 

To that end, the associated States shall adopt equivalent measures to those adopted 
by the Community in accordance with Article 280(4) of the EC Treaty which are in 
force at the time of signing this Agreement.  

The  Parties  may  decide  by  mutual  agreement  to  adopt  equivalent  measures  to  any 
subsequent measures adopted by the Community in accordance with this Article.  

Article 8 

On-the spot checks and inspections by the Commission 

Without  prejudice  to  its  rights  under  Articles  35  and  47  of  the  Decision,  the  Commission 
(OLAF) shall be authorised to carry out on-the spot checks and inspections in the territory of 
the associated countries in accordance with the terms and conditions laid down in Regulation 
(Euratom,  EC)  No  2185/96  of  11  November  1996  concerning  on-the-spot  checks  and 
inspections  carried  out  by  the  Commission  in  order  to  protect  the  European  Communities' 
financial interests against fraud and other irregularities as regards the Fund. 

The authorities of the associated States shall facilitate the on-the-spot checks and inspections 
which may, if the authorities so wish, be carried out jointly with them. 

Article 9 

Court of Auditors 

As  set  out  in  Article  248(3)  of  the  EC  Treaty  and  Part  One,  Title  VIII,  chapter  1  of  the 
Financial  Regulation,  the  Court  of  Auditors  as  established  by  the  EC  Treaty  shall  notably 
have the possibility to perform audits on the spot on the premises of any body which manages 
revenue or expenditure on behalf of the Community in the territory of the associated States as 
regards  the  Fund  including  on  the  premises  of  any  natural  or  legal  person  in  receipt  of 
payments from the budget.  

Audits  by  the  Court  of  Auditors  in  the  associated  States  shall  be  carried  out  in  liaison  with 
national  audit  bodies  or,  if  these  do  not  have  the  necessary  powers,  with  the  competent 
national  departments.  The  Court  of  Auditors  and the  national  audit  bodies  of  the  associated 
States shall cooperate in a spirit of trust while maintaining their independence. These bodies 
or  departments  shall  inform  the  Court  of  Auditors  whether  they  intend  to  take  part  in  the 
audit.  

The Court of Auditors shall have at least the same rights as the Commission as laid down in 
Articles 35 and 47 of the Decision and Article 8 of this Agreement.  

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Article 10 

Public procurement 

1. 

2. 

Norway, Iceland and Liechtenstein shall apply the provisions of their law on public 
procurement in accordance with Annex XVI to the EEA Agreement.  

Switzerland  shall  apply  its  national  law  on  public  procurement  in  accordance  with 
the provisions of the WTO Agreement on Government Procurement (GPA).  

Switzerland  shall  provide  the  Commission  with  a  description  of  its  public 
procurement procedures together with the description of the management and control 
system.  

Moreover, it shall provide information on the public procurement procedures applied 
in each final report on the implementation of the annual programme.  

Article 11 

Financial contributions and allocations  

1. 

The  associated  States  shall  make  annual  payments  to  the  budget  of  the  Fund  in 
accordance with the following tables: 

in '000 Euro 

annual appropriations (EC budget) 

Norway  

Iceland  

Switzerland  

2009  

185.500 

5.100 

260  

5.565 

For 2009 payments shall be made on the basis of non-revisable fixed amounts8.  

in '000 Euro 

index9

2010

2011

2012 

2013

annual 

foreseen 
appropriations 
(EC budget) 

%

207.500

253.500

349.100 

481.200

Norway  

Iceland  

2.61

0.04

5.408

6.607

9.099 

12.542

79

96

132 

183

8 
9 

Based on GDP of the year 2007 
Index figures are rounded up 

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2. 

3. 

Switzerland  

Liechtenstein 

3.35

0.03

6.943

8.483

11.682 

16.102

62

76

105 

144

For 2010-2013 the payments shall be made on the basis of the index indicated in this 
table, subject to paragraph 4.  

For  2011-2013,  the  payments  shall  be  made  by  15  February  of  the  budget  year 
concerned, following recovery orders issued by the Commission by 15 December of 
the preceding year.  

The  contributions  foreseen  for  2009  shall  be  due  as  exceptional  contributions  in 
2010. They shall be paid along with the contributions due for 2010 by 15 February 
2010. For Switzerland they shall be paid at the latest one month after the date of the 
signature of this Agreement. 

The allocations foreseen for 2009 to the associated States concerned, established by 
the Commission in accordance with Articles 14 and 15 of the Decision, shall be due 
by the Community as exceptional allocations for 2010 as follows:  

Norway: 

1.611.049 euros  

Iceland: 

62.148 euros  

Switzerland  2.282.112 euros  

A  single  annual  programme  (2010)  will  cover  both  the  2010  allocations  and  these 
exceptional allocations.  

As  from  2010  the  allocations  foreseen  for  the  associated  States  shall  be  calculated 
annually in accordance with Articles 14 and 15 of the Decision.  

4. 

The Parties shall correct the contributions from each associated State for the budget 
years  2010,  2011,  2012  and  2013  on  the  basis  of  the  latest  available  annual  GDP 
figures on 1 May 2012. The correction(s) shall be made to the contribution for 2013.  

For  the  purpose  of  the  corrections,  the  GDP  percentage  of  the  associated  State 
concerned shall be calculated as follows:  

As regards Norway and Iceland, for each its GDP percentage shall be calculated in 
relation with the GDP of all participating countries, as laid down in Article 12(1) of 
the Association Agreement with Norway and Iceland; 

As regards Switzerland, its GDP percentage  shall be calculated in relation with the 
GDP  of  all  participating  countries,  as  laid  down  in  Article  11  of  the  Association 
Agreement with Switzerland;  

As regards Liechtenstein, its GDP percentage shall be calculated in relation with the 
GDP  of  all  participating  countries,  as  laid  down  in  Article  3  of  the  Association 
Protocol with Liechtenstein.  

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5. 

6. 

7. 

8. 

The figures in the table in paragraph 1 shall be adjusted by the Parties in case of a 
change in the total reference amount in Article 13(1) of the Decision or changes in 
the  actual  annual  appropriations  to  those  foreseen  in  the  table  of  paragraph  1  as 
decided  by  the  budgetary  authority  of  the  EC  in  accordance  with  Point  37  of  the 
Interinstitutional  Agreement between the European Parliament, the Council and the 
Commission  on  budgetary  discipline  and  sound  financial  management10  in  the 
context  of  the  Multiannual  Financial  Framework  of  the  European  Union  for  the 
period 2007 -2013.  

Any adjustment shall be proportional to the change in the total reference amount or 
annual  appropriation(s)  concerned  and  shall  be  applied  to  the  budgetary  year(s) 
affected by the change. 

To that end, the Commission shall communicate by letter to the associated States the 
adjustments  in  the  size  of  their  financial  contributions  and  the  arrangements  to  be 
followed for the relevant payments or reimbursements.  

The contribution of Liechtenstein shall only cover the years as from the day referred 
to in Article 13(6).  

The  Commission  may  use  up  to  300.000  euros  of  the  payments  made  by  the 
associated States each year to finance the administrative expenditure related to staff 
or external staff necessary for supporting the implementation by the associated States 
of the Decision and this Agreement.  

For  2009  and  2010  the  Commission  shall  make  the  Community  budgetary 
commitments for the budget year concerned on the basis of the amounts allocated to 
the associated States by the Commission in accordance with Articles 14 and 15 of the 
Decision.  

Article 12 

Confidentiality  

Information  communicated  or  acquired  in  any  form  whatsoever  pursuant  to  this  Agreement 
shall be covered by professional secrecy and protected in the same way as similar information 
is protected by the provisions applicable to the Community institutions and by the laws of the 
associated  States.  Such  information  shall  not  be  communicated  to  persons  other  than  those 
within  the  Community  institutions,  in  the  Member  States  or  in  the  associated  States  whose 
functions  require  them  to  know  it,  nor  may  it  be  used  for  purposes  other  than  to  ensure 
effective protection of the financial interests of the Parties.  

10 

OJ C139, 14.6.2006, p.1 

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1. 

2. 

3. 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

5. 

Article 13 

Entry into force 

The Secretary General of the Council of the European Union shall act as depositary 
of this Agreement. 

The  European  Community,  Norway,  Iceland,  Switzerland  and  Liechtenstein  shall 
approve this Agreement in accordance with their own procedures. 

The  entry  into  force  of  this  Agreement  shall  require  approval  by  the  European 
Community and by at least one other signatory. 

This Agreement shall enter into force in relation to any party on the first day of the 
first month following the deposit of its instrument of approval with the depositary. 

Except  for  Article  6,  the  European  Community,  Norway,  Iceland  and  Switzerland 
shall  apply  this  Agreement  provisionally  as  from  the  day  following  that  of  its 
signature, without prejudice to constitutional requirements.  

The  European  Community  and  Liechtenstein  shall  apply 
this  Agreement 
provisionally  as  from  the  day  when  the  provisions  referred  to  in  Article  2  of  the 
Association Protocol with Liechtenstein are put into effect in accordance with Article 
10 of that Protocol.  

Article 14 

Programming  

The associated States shall inform the Commission of the authorities designated for 
the implementation of their multiannual programme and the annual programmes no 
later than one month after the signature of this Agreement.  

The associated States shall submit their draft multiannual programme 2010-2013 to 
the Commission no later than three months after the signature of this Agreement.  

The  associated  States  shall  submit  their  draft  annual  programme  for  2010  to  the 
Commission no later than five months after the signature of this Agreement.  

The  associated  States  shall  submit  a  description  of  the  management  and  control 
systems referred to in Article 34(2) of the Decision no later than three months after 
the signature of this Agreement.  

The  Commission  shall  approve  the  multiannual  programme  within  three  months  of 
its  formal  submission  and  the  annual  programme  2010  within  one  month  of  its 
formal  submission  in  accordance  with  the  procedures  set  up  in  the  Decision  and 
provided  that  the  Commission  has  satisfied  itself  in  accordance  with  the  procedure 
laid  down  in  Article  34  of  the  Decision  that  the  associated  States  have  set  up 
management and control systems that comply with Articles 26 to 32 of the Decision.  

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6. 

It is not necessary for the associated States to submit the evaluation report foreseen 
in Article 52(2)(a) of the Decision.  

Article 15 

Validity and termination 

1. 

2. 

Either  the  Community  or  an  associated  State  may  terminate  this  Agreement  by 
notifying the other Parties of its decision. The Agreement shall cease to apply three 
months  after  the  date  of  such  notification.  Projects  and  activities  in  progress  at  the 
time  of  termination  shall  continue  according  to  the  conditions  laid  down  in  this 
Agreement. The Parties shall settle by mutual agreement any other consequences of 
termination. 

As  regards  Norway  and  Iceland,  this  Agreement  shall  be  terminated  when  the 
respective  Association  Agreement  with  Norway  and  Iceland  is  terminated  in 
accordance with Articles 8, paragraph 4, 11, paragraph 3 or 16 of the Agreement.  

As  regards  Switzerland,  this  Agreement  shall  be  terminated  when  the  Association 
Agreement with Switzerland is terminated in accordance with Articles 7, paragraph 
4, 10, paragraph 3 or 17 of the Agreement.  

As regards Liechtenstein, this Agreement shall be terminated when the Association 
Protocol with Liechtenstein is terminated in accordance with Articles 5, paragraph 4, 
11, paragraph 1 or 11, paragraph 3 of that Protocol.  

Article 14 

Languages 

This  Agreement  as  well  as  the  Declarations  annexed  thereto  shall  be  drawn  up  in  a  single 
original in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, 
Greek,  Hungarian,  Italian,  Latvian,  Lithuanian,  Maltese,  Polish,  Portuguese,  Romanian, 
Slovak, Slovenian, Spanish, Swedish, Icelandic and Norwegian languages, each of those texts 
being equally authentic.  

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Joint  Declaration  by  the  European  Community  and  Liechtenstein  on  the  latter’s 
participation in the External Borders Fund in application of Decision No 574/2007/EC 

The European Community and Liechtenstein 

- Having regard to the geographic situation of Liechtenstein in that it lacks external borders 
and a consular network which would be at the basis for developing a programme to 
implement the Fund and 

- Recognising Liechtenstein’s commitment to pursue the objectives of the Schengen Acquis 
as well as its solidarity with the States that apply the Schengen provisions on external borders 

agree  that  Liechtenstein  can  choose  not  to  participate  in  the  implementation  of  the  Fund, 
provided  that  it  contributes  financially  to  the  Fund  in  accordance  with  Article  11  of  the 
Agreement between the European Community and the Kingdom of Norway, the Republic of 
Iceland, the Swiss Confederation and the Principality of Liechtenstein on supplementary rules 
in  relation  to  the  External  Borders  Fund  for  the  period  2007  to  2013.  Accordingly, 
Liechtenstein will contribute to the Fund but waive the right to receive allocations under the 
Fund in accordance with Articles 14 and 15 of Decision 574/2007/EC.  

Should Liechtenstein at a later stage wish to participate, it shall inform the Commission well 
in advance and the necessary practical arrangements to ensure the application of Decision No 
574/2007/EC, the implementing rules and this Agreement shall be laid down in an exchange 
of letters.  

Declaration  by  the  government  of  Norway  on  the  direct  enforceability  of  Decisions  by 
the  European  Community  Institutions  regarding  pecuniary  obligations  addressed  to 
enterprises located in Norway  

The  attention  of  the  Contracting  Parties  is  drawn  to  the  fact  that  the  present  constitution  of 
Norway does not provide for direct enforceability of decisions by the European Community 
institutions  regarding  pecuniary  obligations  addressed  to  enterprises  located  in  Norway. 
Norway acknowledges that such decisions should continue to be addressed directly to these 
enterprises and that they should fulfil their obligations in accordance with the present practice. 
The  said  constitutional  limitations  to  direct  enforceability  of  decisions  by  European 
Community  institutions  regarding  pecuniary  obligations  do  not  apply  to  subsidiaries  and 
assets  in  the  territory  of  the  Community  belonging  to  enterprises  located  in  Norway.  If 
difficulties should arise, Norway is prepared to enter into consultations and work towards a 
mutually satisfactory solution.  

Declaration by the European Community  

The Commission will keep the situation referred to in Norway's unilateral declaration under 
constant review. It may at any time initiate consultations with Norway with a view to finding 
satisfactory solutions to such problems. 

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