EUEEA Programmes Multiannual Financial Framework 2021 2027 and

EU/EEA Programmes Multiannual Financial Framework 2021 -2027 and EEA EFTA Participation Egill Eyjolfsson, EFTA Secretariat - IMD

1. Programmes and the EEA Agreement 2. Main Themes of the 2021 -2027 MFF 3. Financial Implications for the EEA EFTA States 4. Assessment, Procedural Considerations and Timeline. The EU and the EEA side

Two kinds of EEA cooperation Homogeneity of legislation The four freedoms Free movement of Goods, Free movement of services Free movement of capital Free movement of persons Competition, State Aid and Public Procurement Flanking and horizontal policies Environment Gender Equality Labour law Consumer protection Company law Statistics Health and Safety Participation in EU programmes Research and technological development Information Services The environment Education, training and youth Social Policy Consumer protection Small and medium sized enterprises, Tourism Audiovisual sector Civil protection

Co-operation outside the Four Freedoms • The Parties shall strengthen and broaden cooperation on matters falling outside of the four freedoms. (Part VI, Art. 78) • Participation in EU programmes is a key instrument for cooperation in a wide range of areas.

EU => EEA Programmes • Identification of Programmes which are likely to further the objectives of the EEA Agreement. • Participation takes the form of association to the Individual Policy Programmes under the EU Multiannual Financial Framework (MFF). • Inclusion into the Agreement along with financial modalities for payments.

Rights of EEA EFTA States • Full and equal access to all parts of an EU programme or activity. • At project level, persons and organisations from the EEA EFTA States have the same rights and obligations as those applicable to persons in the EU Member States. • The EEA EFTA States can participate fully and equally in the Committees assisting the Commission in the management and development of a Programme.

Obligations of EEA EFTA States • Obligations as set out in the EU Programme and Financial Regulations • Financial Contribution from the EEA EFTA States to the EU Programme Budgets

EU Programmes 2007 -2013 Participation in 16 Programmes Total EEA EFTA Commitments of 1. 7 Billion euro • • • • 7 th Research Framework Programme (FP 7) Competitiveness and Innovation Programme (CIP) Lifelong learning (LLL) Culture Youth in Action Media Daphne: Combating violence Employment and Social Solidarity (Progress) Health Consumer Safer Internet Marco Polo II Rapid response instrument for major emergencies Civil Protection Erasmus Mundus Statistics

EU Programmes 2014 -2020 Participation in 13 Programmes Total EEA EFTA Commitments of 1. 7 Billion euro • • • • Horizon 2020 Erasmus+ Implementation and exploitation of European satellite navigation systems (EGNOS and Galileo) Copernicus Creative Europe Connecting Europe Facility (ICT Part) Health for Growth Union Civil Protection Mechanism European Statistical Programme (ESP) Employment and Social Innovation Consumer Programme Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) Rights, Equality and Citizenship

EU Programmes 2021 -2027 ?

Main Themes EU MFF 2021 - 2027

EU MFF 2021– 2027 • Content ü Less on traditional Cohesion Policy and the CAP (Common Agricultural Policy) ü More on Erasmus+, Research and Innovation and actions for the development and operation of the Internal Market ü More on Defense and Security • Structure ü Consolidation and restructuring of Programmes (from 58 to 37) • Challenges ü Brexit

Changes in Priorities

I SINGLE MARKET, INNOVATION & DIGITAL 1 Research & Innovation • Horizon Europe • International Thermonuclear Experimental Reactor (ITER) • Euratom Research & Training Programme 2 European Strategic Investments • Invest. EU Fund • Connecting Europe Facility • Digital Europe Programme (incl. Cybersecurity) 3 Single Market • Single Market Programme (incl. Competitiveness and Small and Medium-Sized Enterprises - COSME, Food Safety, Statistics, Consumer, Competition and Administrative Cooperation) • EU Anti-Fraud Programme • Cooperation in the Field of Taxation (FISCALIS) • Cooperation in the Field of Customs (CUSTOMS) 4 Space • European Space Programme II COHESION & VALUES 5 Regional Development & Cohesion European • European Regional Development Fund Solidarity Fund • Cohesion Fund • Support to the Turkish-Cypriot Community 6 Economic & Monetary Union European • Reform Support Programme including the Reform Investment Delivery Tool and Convergence Facility Stabilisation Function • Protection of the Euro Against Counterfeiting 7 Investing in People, Social Cohesion & Values • European Social Fund + (incl. Ea. SI & Health) • • ERASMUS+ European Solidarity Corps Justice, Rights & Values Creative Europe (incl. MEDIA) Globalization Adjustment Fund

IV MIGRATION & BORDER MANAGEMENT III NATURAL RESOURCES & ENVIRONMENT 8 Agriculture & Maritime Policy • European Agricultural Guarantee Fund • European Agricultural Fund for Rural Development • European Maritime & Fisheries Fund 25% climate 9 Environment & Climate Action mainstreaming • Programme for Environment & Climate Action across the EU Budget (LIFE) VI NEIGHBOURHOOD & THE WORLD V SECURITY & DEFENCE 15 External Action* • Neighbourhood, Development and International Cooperation Instrument 12 Security • Internal Security Fund • Nuclear Decommissioning (Lithuania) • Nuclear Safety and Decommissioning (incl. for Bulgaria and Slovakia) 13 Defence • European Defence Fund • Connecting Europe Facility - Military Mobility 14 Crisis Response • Union Civil Protection Mechanism (resc. EU) 10 Migration • Asylum & Migration Fund 11 Border Management • Integrated Border Management Fund (incl. external aspects of migration) European Peace Facility Emergency Aid Reserve • Humanitarian Aid • Common Foreign & Security Policy • Overseas Countries and Territories (including Greenland) • 16 Pre-Accession Assistance • Pre-Accession Assistance *The European Peace Facility is an off - budget fund outside the Financial Framework European Border and Coast Guard (Frontex)

Financial Implications for the EEA EFTA States

Contribution to the EEA Budget EEA Agreement Article 82, Protocol 32. • MFF 2007 – 2013 (1. 7 Billion) • MFF 2014 – 2021 (3. 2 Billion)

Proportional Contributions 3. 50% 3. 00% 2. 50% 2. 00% 1. 50% 1. 00% 0. 50% 0. 00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2. 28% 2. 39% 2. 40% 2. 52% 2. 38% 2. 60% 2. 80% 3. 03% 2. 97% 2. 76% 2. 47% 2. 36% 2. 42% Ice 0. 11% 0. 12% 0. 08% 0. 07% 0. 08% 0. 09% 0. 10% 0. 12% 0. 14% Lie 0. 02% 0. 03% 0. 04% Nor 2. 15% 2. 26% 2. 41% 2. 28% 2. 49% 2. 69% 2. 92% 2. 86% 2. 64% 2. 34% 2. 21% 2. 24%

Contribution to the EEA Budget 450, 000 400, 000 350, 000 300, 000 250, 000 200, 000 150, 000 100, 000 50, 000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 131, 816 190, 139 206, 080 218, 433 206, 082 241, 222 307, 556 316, 349 425, 775 402, 902 363, 817 x 1000 euro

Financial Impact on EEA EFTA Contribution • Decrease in focus on Cohesion and the CAP - Outside of the scope of EEA EFTA Participation • Increase in commitments towards Internal Market initiatives and Programmes - areas where EEA EFTA Participates => Absolute Increase in EEA Contribution

Financial Impact on EEA EFTA Contribution • UK’s departure - Currently carries around 15% of the EU 28 GDP • Recalculating the 2019 proportionality factor on the basis of the EU 27 GDP - EEA EFTA contribution = 2. 83% (2. 42% EU 28) => Relative Increase in EEA Contribution.

Assessment, Procedural Considerations and Timeline The EU and the EEA side

2018 – 2021 To Do List: ü Identification of Programmes ü Assessment of Programmes ü Shaping/Influencing of Programmes ü Notifying EC of Participation ü Inclusion of Programme Regulations ü Implementation

EEA Relevant Programmes • 14 Programmes in assessment - Programmes in a wide range of policy areas are being assessed under the EFTA WG structure, in parallel with National processes. - EEA EFTA Comments have been provided as input to the EU Legislative procedure. • Estimated EEA EFTA Commitments - Full participation in all Programmes is estimated to potentially require a commitment of around 6, 2 billion euro. - Identifying the parts where participation is less likely the estimated baseline commitment more likely to be approx. 4. 5 billion.

Programmes MFF 2021 -2027 • • • • Creative Europe Horizon Europe ERASMUS Digital Europe (incl. Cyber Security) Connecting Europe Facility European Space Programme Single Market Programme European Social Fund Rights & Values (Justice, Rights & Values Fund) European Defence Fund Union Civil Protection Mechanism Invest EU Life Programme for Environment and Climate Action European Solidarity Corps

Future Dates • EEA EFTA to Inform EU of Participation by February 2020 - Indicative - Non-binding • EEA to include Programme regulations by February 2021 - Important to ensure full participation from beginning 2021