The EEA Grants in the current period have been allocated to programmes defined at national level, instead of to individual projects. These programmes have been implemented according to the Regulation and after a process of negotiation between the donors and the European Commission and then between the donors and the beneficiary countries. This negotiation has concerned, first, the Memorandum of Understanding and, second, the specific Programme Agreements. The process of negotiation and of preparing open calls for proposals has taken significantly longer than expected. This has led to severe delays in the allocation of funds and significantly reduced the time available to implement projects. However, there is broad support for the programme-based approach, as it could further improve the strategic focus and simplify the management arrangements. Given the time and effort that has been expended in setting up the programme-based approach, consideration should be given as to whether this approach should be retained for the next period. Stakeholders from the donor and beneficiary countries should consider whether negotiations can be concluded much more easily the second time round and whether programme management capacity can be retained. Where this is the case, the programme-based approach should be continued. There would be potential benefits from extending the end-date for completing expenditure and/or extending the programme period from 5 to 7 years. Monitoring indicators are appropriate, although many outcomes do not easily lend themselves to measurement and quantification. Qualitative reporting therefore remains important alongside monitoring of quantitative outputs.