Both mechanisms entered into force on 1 May 2004. The objectives of the mechanisms were to contribute to the reduction of economic and social disparities in the EU/EEA area through the financing of grants to investment and development programmes and projects. In the five-year period from 1 May 2004 to 30 April 2009, € 1.3 billion will be made available through the EEA and Norway Grants by the EEA/EFTA states. A total € 672 is channeled through the EEA Grants, jointly set up by Iceland, Liechtenstein and Norway, of which Norway’s share is around 95 percent. Moreover, for the same period, Norway contributes € 567 million through the Norway Grants to the ten countries that joined the EU in 2004, and contributes € 68 million in bilateral cooperation programmes with Bulgaria and Romania. The bilateral cooperation programmes are administered by Innovation Norway.
The beneficiary states under the two grant mechanisms are primarily the 12 countries that have joined the EU since 2004 (Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia, Bulgaria and Romania), as well as Greece, Spain and Portugal. Whereas the Norway Grants is solely targeted at the new EU member states, the EEA Grants also includes the EU member states Spain, Greece and Portugal. The grants are available for projects in the following priority sectors: Environment, sustainable development, cultural heritage, human resource development and health and child care, as well as academic research targeted at one of the above mentioned sectors. As regards the Norway Grants, the priority sectors are the same as under the EEA Grants, but with emphasis on projects in the areas of implementation of the Schengen acquis, environment (especially administrative capacity, infrastructure, technology and municipal waste management), regional policy and cross-border activities and technical assistance relating to implementation of acquis communautaire.
Being by far the biggest of the ten new member states, Poland benefits from almost half of the total amount of the funds.
Although the two mechanisms are clearly separated, they are closely co-ordinated regarding application procedures and assessments and the two mechanisms can also co-finance projects. Furthermore, the two mechanisms share a secretariat: The Financial Mechanism Office established in Brussels, assisting in the implementation of the mechanisms.