Articles 115-116 EEA provides for a financial mechanism.
Article 115 EEA states,
‘With a view to promoting a continuous and balanced strengthening of trade and economic relations between the Contracting Parties, as provided for in Article 1, the Contracting Parties agree on the need to reduce the economic and social disparities between their regions. They note in this regard the relevant provisions set out elsewhere in this Agreement and its related Protocols, including certain of the arrangements regarding agriculture and fisheries.’
Article 116 EEA states,
‘A Financial Mechanism shall be established by the EFTA States to contribute, in the context of the EEA and in addition to the efforts already deployed by the Community in this regard, to the objectives laid down in Article 115.’
On 1 December 2023, the 2021-2028 allocation by the EFTA-EEA states (Iceland, Liechtenstein, and Norway) has been agreed.
This is made up of two different funds: the EEA Financial Mechanism (‘EEA Grants’) and the Norwegian Financial Mechanism (‘Norway Grants’).
During the 2014-2021 period, the ‘EEA Grants’ amounted to €1.5bn (17.6bn NOK).
More information on the 2021-2028 allocation can be found here.