European Economic Area
The European Economic Area (EEA) was established via the Agreement on the European Economic Area, an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Association.[4] The EEA links the EU member states and three of the four EFTA states (Iceland, Liechtenstein, and Norway) into an internal market governed by the same basic rules. These rules aim to enable free movement of persons, goods, services, and capital within the European single market, including the freedom to choose residence in any country within this area. The EEA was established on 1 January 1994 upon entry into force of the EEA Agreement. The contracting parties are the EU, its member states, and Iceland, Liechtenstein, and Norway.[5] New members of EFTA would not automatically become party to the EEA Agreement, as each EFTA State decides on its own whether it applies to be party to the EEA Agreement or not. According to Article 128 of the EEA Agreement, "any European State becoming a member of the Community shall, and the Swiss Confederation or any European State becoming a member of EFTA may, apply to become a party to this Agreement. It shall address its application to the EEA Council." EFTA does not envisage political integration. It does not issue legislation, nor does it establish a customs union. Schengen is not a part of the EEA Agreement. However, all of the four EFTA States participate in Schengen and Dublin through bilateral agreements. They all apply the provisions of the relevant Acquis.[6]
Not to be confused with European Free Trade Association.
European Economic Area
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- Европейска икономическа зона (Bulgarian)
- Europski gospodarski prostor (Croatian)
- Evropský hospodářský prostor (Czech)
- Det Europæiske Økonomiske Samarbejdsområde (Danish)
- Europese Economische Ruimte (Dutch)
- Euroopa Majanduspiirkond (Estonian)
- Euroopan talousalue (Finnish)
- Espace économique européen (French)
- Europäischer Wirtschaftsraum (German)
- Ευρωπαϊκός Οικονομικός Χώρος (Greek)
- Európai Gazdasági Térség (Hungarian)
- Evrópska efnahagssvæðið (Icelandic)
- Limistéar Eorpach Eacnamaíoch (Irish)
- Spazio economico europeo (Italian)
- Eiropas Ekonomikas zona (Latvian)
- Europos ekonominės erdvės (Lithuanian)
- Europäesche Wirtschaftsraum (Luxembourgish)
- Żona Ekonomika Ewropea (Maltese)
- Det europeiske økonomiske samarbeidsområde (Norwegian)
- Europejski Obszar Gospodarczy (Polish)
- Espaço Económico Europeu (Portuguese)
- Spațiul Economic European (Romanian)
- Európsky hospodársky priestor (Slovak)
- Evropski gospodarski prostor (Slovene)
- Espacio Económico Europeo (Spanish)
- Europeiska ekonomiska samarbetsområdet (Swedish)
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- Европейска икономическа зона (Bulgarian)
- Europski gospodarski prostor (Croatian)
- Evropský hospodářský prostor (Czech)
- Det Europæiske Økonomiske Samarbejdsområde (Danish)
- Europese Economische Ruimte (Dutch)
- Euroopa Majanduspiirkond (Estonian)
- Euroopan talousalue (Finnish)
- Espace économique européen (French)
- Europäischer Wirtschaftsraum (German)
- Ευρωπαϊκός Οικονομικός Χώρος (Greek)
- Európai Gazdasági Térség (Hungarian)
- Evrópska efnahagssvæðið (Icelandic)
- Limistéar Eorpach Eacnamaíoch (Irish)
- Spazio economico europeo (Italian)
- Eiropas Ekonomikas zona (Latvian)
- Europos ekonominės erdvės (Lithuanian)
- Europäesche Wirtschaftsraum (Luxembourgish)
- Żona Ekonomika Ewropea (Maltese)
- Det europeiske økonomiske samarbeidsområde (Norwegian)
- Europejski Obszar Gospodarczy (Polish)
- Espaço Económico Europeu (Portuguese)
- Spațiul Economic European (Romanian)
- Európsky hospodársky priestor (Slovak)
- Evropski gospodarski prostor (Slovene)
- Espacio Económico Europeo (Spanish)
- Europeiska ekonomiska samarbetsområdet (Swedish)
- EEA Joint Committee
- EEA Council
2 May 1992
1 January 1994
4,945,000 km2 (1,909,000 sq mi)
453,000,000
2020 estimate
US$39,500
The EEA Treaty is a commercial treaty and differs from the EU Treaties in certain key respects. According to Article 1 its purpose is to "promote a continuous and balanced strengthening of trade and economic relation". The EFTA members do not participate in the Common Agricultural Policy or the Common Fisheries Policy.
The right to free movement of persons between EEA member states and the relevant provisions on safeguard measures are identical to those applying between members of the EU.[7][8] The right and rules applicable in all EEA member states, including those which are not members of the EU, are specified in Directive 2004/38/EC[8] and in the EEA Agreement.[7][9]
The EEA Agreement specifies that membership is open to member states either of the EU or of the EFTA. EFTA states that are party to the EEA Agreement participate in the EU's internal market without being members of the EU or the European Union Customs Union. They adopt most EU legislation concerning the single market, with notable exclusions including laws regarding the Common Agricultural Policy and Common Fisheries Policy.[10] The EEA's "decision-shaping" processes enable EEA EFTA member states to influence and contribute to new EEA policy and legislation from an early stage.[11] Third country goods are excluded for these states on rules of origin.
When entering into force in 1994, the EEA parties were 17 states and two European Communities: the European Community, which was later absorbed into the EU's wider framework, and the now defunct European Coal and Steel Community. Membership has grown to 30 states as of 2020: 27 EU member states, as well as three of the four member states of the EFTA (Iceland, Liechtenstein and Norway).[5] The Agreement is applied provisionally with respect to Croatia—the remaining and most recent EU member state—pending ratification of its accession by all EEA parties.[2][12] One EFTA member, Switzerland, has not joined the EEA, but has a set of bilateral sectoral agreements with the EU which allow it to participate in the internal market.
Future enlargement
Recent EU member states
When a state joins the EU, they do not necessarily immediately become part of the EEA but are obliged to apply.[31] Following the 2004 enlargement of the EU, which saw Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia acceding to the EU on 1 May 2004, the EEA Enlargement Agreement was applied on a provisional basis to the 10 acceding countries as from the date of their accession in May 2004 to the EU.[32] On the other hand, following the 2007 enlargement of the EU, which saw Bulgaria and Romania acceding to the EU on 1 January 2007, an EEA Enlargement Agreement was not signed until 25 July 2007 and only provisionally entered into force on 1 August 2007.[33][34][22] The agreement did not fully enter into force until 9 November 2011.[22]
Rights and obligations
The EEA relies on the same "four freedoms" underpinning the European single market as does the European Union: the free movement of goods, persons, services, and capital among the EEA countries. Thus, the EEA countries that are not part of the EU enjoy free trade with the European Union. Also, the 'free movement of persons is one of the core rights guaranteed in the European Economic Area (EEA) [...]. It is perhaps the most important right for individuals, as it gives citizens of the 30 EEA countries the opportunity to live, work, establish business and study in any of these countries'.[70]
As a counterpart, these countries have to adopt part of the Law of the European Union.
However they also contribute to and influence the formation of new EEA relevant policies and legislation at an early stage as part of a formal decision-shaping process.[11]
Agriculture and fisheries are not covered by the EEA. Not being bound by the Common Fisheries Policy is perceived as very important by Norway and Iceland, and a major reason not to join the EU. The Common Fisheries Policy would mean giving away fishing quotas in their waters.
The EEA countries that are not part of the EU do not contribute financially to Union objectives to the same extent as do its members, although they contribute to the EEA Grants scheme to "reduce social and economic disparities in the EEA". Additionally, some choose to take part in EU programmes such as Trans-European Networks and the European Regional Development Fund. Norway also has its own Norway Grants scheme.[71] After the EU/EEA enlargement of 2004, there was a tenfold increase in the financial contribution of the EEA States, in particular Norway, to social and economic cohesion in the Internal Market (€1167 million over five years).