An official statement from the EBU will read the following :

After reflection and constructive talks with several participating delegations, the EBU proposed to the Reference Group (the Eurovision Song Contest’s governing body) to take a more liberal approach to the flag policy, which was introduced last week, and to allow national, regional, and local flags of the participants, e.g. the Welsh flag (as one of the UK singers is from Wales) and the Sami flag (as the Norwegian singer is originally from Sami heritage). This is in addition to the flags of all UN member states, the EU flag and the rainbow flag, as stipulated in the original flag policy.

The EBU also proposed to the Reference group to take a more tolerant approach to other flags, as long as the audience respects the non-political nature of the Eurovision Song Contest, and not deliberately attempts to obstruct the camera views, as requested.

The Reference Group approved the proposal

Source – Aftonbladet