The financial mechanisms aim to reduce social and economic disparities within the European Economic Area (EEA), and to enable all EEA countries to participate fully in the Internal Market. Through the EEA Financial Mechanism, the three EEA-EFTA states Iceland, Liechtenstein and Norway will make a total €600 million available to the 10 countries that joined the EU and the EEA in May 2004, as well as to Greece, Portugal and Spain. Through the Norwegian Financial Mechanism, Norway will make an additional €567 million available to the 10 countries that joined the EU and the EEA in 2005. Both mechanisms run over a five year period until 2009. Norway, as the largest of the three donors, will contribute with close to €1.14 billion.

Through the EEA and Norwegian Financial Mechanisms, EEA/EFTA states will therefore contribute towards:

• Solidarity - by reducing the social and economic disparities in the newly enlarged EEA.
• Opportunity - by helping new EEA members become fully integrated in the Internal Market.
• Cooperation - by bringing old and new EEA members together and opening new arenas for political and economic relations. 

Within this framework, two bilateral MoUs were signed between Iceland, Liechtenstein, Norway and Malta on 28 April 2005 and between Norway and Malta on 27 June 2005. The total amount available for these Financial Mechanisms is Euro 3.6 million.

Project proposals can be submitted in a wide range of priority sectors by any public or private sector body and NGO constituted as a legal entity in the beneficiary states and operating in the public interest, such as:

• Central and Local authorities
• Education/research institutions
• Environmental bodies
• Voluntary and community organisation

A call for individual project proposals was issued in August 2005. All funds are now committed and projects are being implemented. The selected projects are addressing the following priority areas:

• Conservation of European Cultural Heritage
• Protection of the Environment
• Implementation of Schengen Acquis Requirements.