Oslo, Sep 13 (IANS) Norway, Iceland, Liechtenstein and the European Union (EU) signed an agreement Thursday on a new funding period for the European Economic Area (EEA) and Norway Grants.

For the 2021-2028 period, Norway, Iceland and Liechtenstein are providing 3.268 billion euro (3.62 billion US dollars) to the EU's 15 least prosperous states. Norway provides roughly 97 per cent of this funding.

The agreement was signed in Brussels by the ambassadors from Norway, Iceland and Liechtenstein to the EU and Deputy Secretary-General John Watson from the EU, the Norwegian government said in a press release, Xinhua news agency reported.

Negotiations on a new funding period for the EEA and Norway Grants were formally launched in June 2022, and the negotiators reached an agreement in November 2023. In June 2024, the agreement was approved by the Council of the EU, which represents the member states.

"The EEA and Norway Grants are an important component of the cooperation between Norway and the EU. We will submit the agreement to the Storting (Norwegian Parliament) for approval this autumn. We will then enter into individual agreements with each beneficiary country," said Norwegian Foreign Minister Espen Barth Eide.

The agreement with each beneficiary state will set out a portfolio of programs to be implemented and specify the partners, including Norwegian partners, that will cooperate on program implementation.

The aim of Norway's funding under the EEA and Norway Grants scheme is to reduce social and economic disparities in Europe. In addition, the scheme helps to enhance cooperation between Norway and the beneficiary countries.