In accordance with the EU-EEA agreement that entered into force on 1 May 2004, non-EU member states of EEA (Norway, Liechtenstein and Iceland) are required to pay for participation in the internal market. This contribution constitutes the basis for the new type of funding, namely, the EAA Financing Mechanism.

The entire amount of the funding – available for the ten new member states, in addition to Spain, Portugal and Greece – available for a period of years is equivalent to 120 million Euros per year; Hungary is entitled to receive a 10% share of this framework, i.e., a total of 12 million Euros per year.

In addition to the EEA Financing Mechanism, Norway has set up the Norwegian Financing Mechanism (the Norwegian Fund) by concluding bilateral agreements, the entire framework of which is equivalent to 113 million Euros throughout a period of 5 years; Hungary is entitled to receive a 13% share of this framework, i.e., 15 million Euros per year.

In accordance with the above, Hungary will receive a rate of funding of 27 million Euros per year (approximately 6 billion HUF) throughout a 5-year period. In spite of how this is actually two different funds, they nevertheless have the same set of standard rules of procedure, the same standard system of rules are applicable in the case of the two funds and a standardised institutional system manages the two funds.

Contributions granted in the form of grants must not exceed 60% of project expenditures in the case of both funds, with the exception of projects financed by state, regional and local government funding through alternative means; however, grants must not exceed the value of 85% of total expenditures in these cases as well.
Priority sectors
•  Protection of the environment
•  Sustainable development
•  Conservation of European cultural heritage
•  Human resource development and education
•  Healthcare
•  Childcare and youth
•  Regional development and cross border cooperation
•  Cooperation in justice and home affairs
•  Science, research, joint research activities