Explanatory Memorandum to COM(2014)91 - Conclusion of an Agreement on the participation of Croatia in the EEA and the related Protocol, to take account of the accession of Croatia to the EU

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The Agreement on the European Economic Area, hereinafter referred to as ‘the EEA Agreement’, was signed on 2 May 1992 and entered into force on 1 January 1994.

According to the Act of Accession of the Republic of Croatia, Croatia undertakes to accede, under the conditions laid down in the Act, to the Agreement on the European Economic Area, in accordance with Article 128 of that Agreement.

The attached proposal creates the legal instrument for the conclusion of the Agreement on the participation of the Republic of Croatia in the European Economic Area (‘the Agreement’) and of the related Additional Protocol to the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2009-2014 consequent to the participation of the Republic of Croatia in the European Economic Area (‘the Protocol’) to take account of the accession of the Republic of Croatia to the European Union.

On 4 September 2012[1], the Council authorised the Commission to open negotiations with the Republic of Iceland, the Principality of Liechtenstein and the Kingdom of Norway to amend the EEA Agreement and the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2009-2014. The negotiations with Iceland, Liechtenstein and Norway were successfully concluded by the initialling of:

the Agreement;

the Protocol; and

two additional protocols, namely:

(a) the Additional Protocol to the Agreement between the European Economic Community and the Republic of Iceland consequent to the accession of the Republic of Croatia to the European Union; and

(b) the Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway consequent to the accession of the Republic of Croatia to the European Union.

These two additional protocols are part of a package with the current Agreement and Protocol but are contained in two separate proposals.

The proposed Agreement makes the Republic of Croatia a contracting party to the EEA Agreement and commits the EU to providing an authentic version of the EEA Agreement in the new official language of the EU. The Protocol includes Croatia in the Norwegian Financial Mechanism.

The provisional application of the Agreement and the Protocol is envisaged as of the date stipulated by an exchange of letters between the Parties, pending the completion of the relevant procedures for its formal conclusion and entry into force.

The Commission has judged the results of the negotiations to be satisfactory and asks the Council to adopt the attached decision on the conclusion of the Agreement and the related Protocol.