Government Budget

The Foreign Ministry’s Budget for 2004

Humanitarian assistance and peace efforts

The Government submitted a budget to the Storting today proposing that allocations for humanitarian assistance, human rights, peace, reconciliation and democracy building, which are the responsibility of the Ministry of Foreign Affairs, should be increased by NOK 108 million to NOK 2.7 billion, i.e. by 4 per cent.

The Government’s aim is that Norway should continue to be a major contributor to international humanitarian assistance efforts. Norwegian efforts will be targeted at countries where there are great humanitarian needs and where the measures concerned support peace and reconciliation processes. The Government will give priority to closer co-ordination between humanitarian and political measures so that humanitarian assistance is a supplement to, rather than a substitute for, political action.

The major share of the humanitarian assistance will go to areas of armed conflict. In order to ensure that resources are used effectively, Norway must seek to promote political solutions as well as providing humanitarian assistance. Therefore, peace and reconciliation measures are an integral part of Norway’s humanitarian efforts.

The Government will continue its comprehensive efforts in the Middle East, the Horn of Africa, Sudan, Afghanistan and Sri Lanka. Peace and security are essential preconditions for extensive and lasting development. High priority will therefore be given to peace efforts in Norwegian development co-operation.

Nuclear safety and project support to Russia/CIS

In 2004 approximately NOK 97 million will be allocated to project support to Russia. An additional NOK 107 million will be allocated to measures to promote nuclear safety in Russia. This is NOK 20 million less than what was allocated for these purposes in 2003. The project support will be focused particularly on the Russian part of the Barents Region. One important priority area will be health, with an emphasis on combating communicable diseases such as tuberculosis and HIV/AIDS. Other important priority areas are environmental protection, democracy building, education and research, energy and private sector development. Knowledge transfers are a central feature of these activities.

Financial arrangements in the enlarged EEA

In the negotiations on extending the EEA Agreement, it was decided that two new financial arrangements should be established. One will be an EEA arrangement, and the other a separate Norwegian arrangement. Under these arrangements, the total annual transfers will be EUR 233.4 million, or approximately NOK 1.937 billion, in the period 1 May 2004-30 April 2009. Norway’s share of this will be approximately EUR 226.8 million, or around NOK 1.882 billion, a year.

The increased contributions from the EFTA EEA side and from Norway will be used to promote economic and social cohesion in the enlarged EEA, and will primarily benefit the new member states. The objective is to enable them to take full advantage of the opportunities offered by the Internal Market. The increase in trade and investment is expected to contribute to greater prosperity and cohesion. This will also be in Norway’s interests. It is important for Norway that the new member states are able to implement EU legislation as quickly as possible, particularly in areas of great importance to us, such as improved environmental protection, more effective controls at the external borders and a strengthened legal system.

The distribution of these funds will be based on criteria related to population size and GNI per capita compared with the average for the current member states. Poland will be the major recipient of Norway’s contribution in that close to half of the funds provided by Norway will be earmarked for that country.

Experience has shown that it will take time from the entry into force of these arrangements on 1 May 2004 until the funds are paid out for specific projects in the recipient countries. The Government has proposed paying NOK 50 million under each of these arrangements in 2004.

Contact person: Information Adviser Eirik Bergesen, tel.: +47 22 24 31 71, 90 05 97 33.