Donor states

Iceland, Liechtenstein and Norway established the EEA and Norway Grants in connection with the enlargement of the EU and the European Economic Area (EEA) in 2004.

The overall aim of the EEA and Norway Grants is the reduction of economic and social disparities in the European Economic Area. Over the five-year period 2004-2009, the three donor states contributed with €1.3 billion in funding. Norway's contribution represented around 97% of the total support. In December 2009, Iceland, Liechtenstein and Norway reached an agreement with the EU on financial contributions for the period 2009-2014.

The European Economic Area
The Agreement on the European Economic Area (EEA) brings together the 27 EU Members and the three EEA EFTA countries — Iceland, Liechtenstein and Norway in the Internal Market.

The EEA Agreement provides for the inclusion of EU legislation that covers the four freedoms — the free movement of goods, services, persons and capital — throughout the 30 EEA States. In addition, the agreement covers co-operation in other important areas such as research and development, education, social policy, the environment, consumer protection, tourism and culture. The agreement guarantees equal rights and obligations within the Internal Market for citizens and economic operators in the EEA.

The EEA EFTA States have contributed to the reduction of social and economic disparities within the European Economic Area (EEA) since the EEA Agreement came into force in 1994. The contributions have been the Financial Mechanism (1994-1998), the Financial Instrument (1999-2003), and the EEA and Norway Grants 2004-2009.