No L 305/6 Official Journal of the European Communities 30. 11. 94 COUNCIL REGULATION (EC) No 2894/94 of 28 November 1994 concerning arrangements for implementing the Agreement on the European Economic Area THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 238 in conjunction with Article 228 (2), second phrase, and (3), second subpa- ragraph thereof, Having regard to the proposal from the Commission, | Having regard to the assent of the European Parlia- ment ('), Whereas an Agreement on the European Economic Area was negotiated between the European Economic Commu- nity, the European Coal and Steel Community and their Member States, on the one hand, and the EFTA States, on the other, and was signed in Oporto on 2 May 1992; Whereas, following Switzerland’s non-ratification of that Agreement, the European Economic Community, the European Coal and Steel Community and their Member States, on the one hand, and the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Princi- pality of Lichtenstein, the Kingdom of Norway and the Kingdom of Sweden, on the other, signed a Protocol on 17 March 1993 amending the Agreement on the Euro- pean Economic Area and the Agreement and the Protocol are hereinafter referred to as ‘the EEA Agreement’; Whereas it is necessary to establish the arrangements for implementing various provisions of the EEA Agreement ; Whereas the EEA Agreement provides for an EEA Joint Committee with decision-making powers ; whereas, since the Community will have to state its views within that Committee, it is necessary to lay down rules of procedure for deciding on the position the Community will adopt ; Whereas provisional Rules of Procedure must be laid down to incorporate the acquis communautaire as close as possible to the date of entry into force of the EEA Agreement, in good time to secure the objective of the EEA Agreement, namely to establish a dynamic and homogenous European Economic Area; Whereas implementing rules must also be provided for in the field of competition, to enable in particular the prin- ciples governing the application of competition law, on the basis of Articles 85 and 86 of the EC Treaty, to be applied mutatis mutandis to the EEA; (*) Assent delivered on 17 November 1994 (not yet published in the Official Journal). Whereas, given the special nature of the Banking Advi- sory Committee set up by Article 11 of Directive 77/780/EEC () and of the Insurance Committee set up by Directive 91/675/EEC (%), specific rules must be laid down for consulting them ; Whereas, in accordance with the EEA Agreement, a financial mechanism has been established by the EFTA States and whereas it is necessary to lay down the method for determining the allocation of grants and interest rebates on loans to each recipient Member State in accor- dance with Protocol 38 of the EEA Agreement ; whereas this allocation is specific to the EEA framework and the criteria chosen in no way prejudice the criteria applicable to Community Funds; . Whereas the Agreements concluded by the Community bind its institutions and its Member States ; whereas the latter must therefore take any measures necessary to enable the Community to fulfil its obligations under the EEA Agreement, HAS ADOPTED THIS REGULATION : Article 1 1.  Where the Commission submits a proposal to the Council which it considers to fall within an area covered by the EEA Agreement, it shall indicate that after its adoption the future act should be extended to the EEA. If a Member State challenges the Commission’s opinion that the proposal in question falls within an area covered by the EEA Agreement and that it must therefore be extended to the EEA, the Council shall take a decision by the majority provided for in the provision adopted as the legal basis for the act of Community legislation it is proposed to extend after its adoption, no later than the time of its adoption, on whether the act in question actu- ally falls within an area covered by the EEA Agreement. 2. The Community’s position regarding EEA Joint Committee decisions which simply extend acts of Community legislation to the EEA, subject to any tech- nical adjustments needed, shall be adopted by the Commission. () OJ No L 322, 17. 12. 1977, p. 30. Directive as last amended by Directive 89/646/EEC (O] No L 386, 30. 12. 1989, p. 1). ¢) OJ No L 374, 31. 12. 1991, p. 32.