European Economic Area

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        European Economic Area        
    • 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)
European Economic Area member states.svg
  EU states which form part of the EEA
  EFTA states which form part of the EEA
  • Institutions
  •  • Governance
  •  • Regulators
  •  • Courts
Member states [1] [2]
3 of 4 EFTA member states
Establishment
 EEA Agreement signed
2 May 1992
 Entry into force
1 January 1994
Area
 Total
4,945,000 km2 (1,909,000 sq mi)
Population
 2021 estimate
453,000,000
GDP  (nominal)2020 estimate
 Total
US$16.3 trillion [3]
 Per capita
US$39,500

The European Economic Area (EEA) was established via the Agreement on the European Economic Area, [4] an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Association (EFTA). [5] 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. [4] 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]

Contents

The EEA Agreement 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. [4] [7] 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 [7] and in the EEA Agreement. [4] [8]

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. [9] 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. [10] 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,[ citation needed ] 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). [4] 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] [11] 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.

Origins

In the late 1980s, the EFTA member states, led by Sweden, began looking at options to join the then-existing European Economic Community (EEC), the precursor of the European Union (EU). The reasons identified for this are manifold. Many authors cite the economic downturn at the beginning of the 1980s, and the subsequent adoption by the EEC of the "Europe 1992 agenda", as a primary reason. Arguing from a liberal intergovernmentalist perspective, these authors argue that large multinational corporations in EFTA countries, especially Sweden, pressed for EEC membership under threat of relocating their production abroad. Other authors point to the end of the Cold War, which made joining the EEC less politically controversial for neutral countries. [12]

Meanwhile, Jacques Delors, who was President of the European Commission at the time, did not like the idea of the EEC enlarging with more member states, as he feared that it would impede the ability of the Community to complete internal market reform and establish monetary union. He proposed a European Economic Space (EES) in January 1989, which was later renamed the European Economic Area, as it is known today. [12]

By the time the EEA was established in 1994, however, several developments hampered its credibility. First of all, Switzerland rejected the EEA agreement in a national referendum on 6 December 1992, obstructing full EU-EFTA integration within the EEA. Furthermore, Austria had applied for full EEC membership in 1989, and was followed by Finland, Norway, Sweden, and Switzerland between 1991 and 1992 (Norway's EU accession was rejected in a referendum, Switzerland froze its EU application after the EEA agreement was rejected in a referendum). The fall of the Iron Curtain had made the EU less hesitant to accept these highly developed countries as member states, since that would relieve the pressure on the EU's budget when the former socialist countries of Central Europe were to join. [12]

Membership

EU states which form part of the EEA
EU state which provisionally applies the EEA agreement
EFTA states which form part of the EEA
EFTA state which signed the EEA agreement but did not join
State which has withdrawn from the EEA European Economic Area members.svg
  EU states which form part of the EEA
  EU state which provisionally applies the EEA agreement
  EFTA states which form part of the EEA
  EFTA state which signed the EEA agreement but did not join
  State which has withdrawn from the EEA

The EEA Agreement was signed in Porto on 2 May 1992 by the then seven states of the European Free Trade Association (EFTA), the European Community (EC) and its then 12 member states. [13] [14] On 6 December 1992, Switzerland's voters rejected the ratification of the agreement in a constitutionally mandated referendum, [15] effectively freezing the application for EC membership submitted earlier in the year. Switzerland is instead linked to the EU by a series of bilateral agreements. On 1 January 1995, three erstwhile members of the EFTA—Austria, Finland and Sweden—acceded to the European Union, which had superseded the European Community upon the entry into force of the Maastricht Treaty on 1 November 1993. Liechtenstein's participation in the EEA was delayed until 1 May 1995. [16] Any European State becoming a member of the EU shall, or becoming a member of EFTA may, apply to become a Party to the EEA agreement according to article 128 of the agreement. [4]

As of 2020, the contracting parties to the EEA are three of the four EFTA member states and the 27 EU member states. [17] The newest EU member, Croatia, finished negotiating their accession to the EEA in November 2013, [18] and since 12 April 2014 has provisionally applied the agreement pending its ratification by all EEA member states. [2] [11]

Treaties

Besides the 1992 Treaty, one amending treaty was signed, as well as three treaties to allow for accession of new members of the European Union.

TreatySignatureEntry into forceOriginal signatoriesComment
EEA agreement2 May 19921 January 199419 states + EEC and ECSC Entered into force as adjusted by the 1993 Protocol
Adjusting Protocol17 March 19931 January 199418 states + EEC and ECSC Allowing entry into force without Switzerland
Participation of 10 new States14 October 20036 December 200528 states + EC In view of 2004 enlargement of the European Union
Participation of two new States25 July 20079 November 201130 states + EC Following 2007 enlargement of the European Union
Participation of one new State11 April 2014not yet in force31 states + EU Following 2013 enlargement of the European Union

Ratification of the EEA Agreement

StateSigned
[Note 1] [1] [19]
Ratified
[Note 1] [1]
Entered into force [1] ExitNotes
Flag of Austria.svg  Austria 2 May 199215 October 19921 January 1994EU member (from 1 January 1995)
Acceded to the EEA as an EFTA member [19]
Flag of Belgium (civil).svg  Belgium 2 May 19929 November 19931 January 1994EU member
Flag of Bulgaria.svg  Bulgaria [20] 25 July 200729 February 20089 November 2011EU member
Flag of Croatia.svg  Croatia [2] 11 April 201424 March 2015 [21] No [22] EU member (from 1 July 2013)
Provisional application (as a participating non-EEA state) from 12 April 2014 [2]
Flag of Cyprus.svg  Cyprus [23] 14 October 200330 April 20046 December 2005EU member
(The application (and implementation) of the agreement is suspended in territories known as Northern Cyprus [Note 2] )
Flag of the Czech Republic.svg  Czech Republic [23] 14 October 200310 June 20046 December 2005EU member
Flag of Denmark.svg  Denmark 2 May 199230 December 19921 January 1994EU member
Flag of Europe.svg  European Union 2 May 199213 December 19931 January 1994Originally as European Economic Community
and European Coal and Steel Community
Flag of Estonia.svg  Estonia [23] 14 October 200313 May 20046 December 2005EU member
Flag of Finland.svg  Finland 2 May 199217 December 19921 January 1994EU member (from 1 January 1995)
Acceded to the EEA as an EFTA member [19]
Flag of France.svg  France 2 May 199210 December 19931 January 1994EU member
Flag of Germany.svg  Germany 2 May 199223 June 19931 January 1994EU member
Flag of Greece.svg  Greece 2 May 199210 September 19931 January 1994EU member
Flag of Hungary.svg  Hungary [23] 14 October 200326 April 20046 December 2005EU member
Flag of Iceland.svg  Iceland 2 May 19924 February 19931 January 1994 EFTA member
Flag of Ireland.svg  Ireland 2 May 199229 July 19931 January 1994EU member
Flag of Italy.svg  Italy 2 May 199215 November 19931 January 1994EU member
Flag of Latvia.svg  Latvia [23] 14 October 20034 May 20046 December 2005EU member
Flag of Liechtenstein.svg  Liechtenstein 2 May 199225 April 19951 May 1995 EFTA member
Flag of Lithuania.svg  Lithuania [23] 14 October 200327 April 20046 December 2005EU member
Flag of Luxembourg.svg  Luxembourg 2 May 199221 October 19931 January 1994EU member
Flag of Malta.svg  Malta [23] 14 October 20035 March 20046 December 2005EU member
Flag of the Netherlands.svg  Netherlands 2 May 199231 December 19921 January 1994EU member
Flag of Norway.svg  Norway 2 May 199219 November 19921 January 1994 EFTA member
Flag of Poland.svg  Poland [23] 14 October 20038 October 20046 December 2005EU member
Flag of Portugal.svg  Portugal 2 May 19929 March 19931 January 1994EU member
Flag of Romania.svg  Romania [20] 25 July 200723 May 20089 November 2011EU member
Flag of Slovakia.svg  Slovakia [23] 14 October 200319 March 20046 December 2005EU member
Flag of Slovenia.svg  Slovenia [23] 14 October 200330 June 20056 December 2005EU member
Flag of Spain.svg  Spain 2 May 19923 December 19931 January 1994EU member
Flag of Sweden.svg  Sweden 2 May 199218 December 19921 January 1994EU member (from 1 January 1995)
Acceded to the EEA as an EFTA member [19]
Flag of Switzerland (Pantone).svg  Switzerland [19] 2 May 1992NoNo EFTA member
EEA ratification rejected in a 1992 referendum
Removed as contracting party in 1993 protocol
Flag of the United Kingdom.svg  United Kingdom 2 May 199215 November 19931 January 199431 January 2020Former EEA and EU member. EEA covered (with exceptions) Gibraltar and the Sovereign Base Areas of Akrotiri and Dhekelia as well as including (for limited purposes) the three Crown Dependencies (Isle of Man, Jersey and Guernsey). The EEA Agreement and EEA Regulations remained applicable in respect of the UK (and the UK in respect of the aforementioned Associated Territories) during the Transition period (also known in the UK as the Implementation period) until 31 December 2020. [28]

Notes

  1. 1 2 Of the original agreement, or a subsequent agreement on participation of that particular state in the EEA.
  2. Protocol 10 of the treaty of accession of the European Union to Cyprus suspended the application of the EU acquis to Northern Cyprus. [24] [25] The EEA Agreement states that it only applies to the territories of EU member states to which the EU treaties apply. [26] A joint declaration to the Final Act of treaty on accession of Cyprus to the EEA confirmed that this included the Protocol on Cyprus. [27]

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. [29] 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. [30] 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. [31] [32] [20] The agreement did not fully enter into force until 9 November 2011. [20]

Croatia

Prior to the 2013 enlargement of the EU, which saw Croatia acceding to the EU on 1 July 2013, an EEA Enlargement Agreement was not signed. Croatia signed its Treaty of Accession to the EU on 9 December 2011 [33] and subsequently lodged their application to the EEA on 13 September 2012. [34] Negotiations started on 15 March 2013 in Brussels, with the aim of achieving simultaneous accession to both the EU and the EEA on 1 July 2013. [35] However, this was not achieved. [36] [37] [38] [39]

On 20 November 2013, it was announced that an enlargement agreement was reached. The text was initialled on 20 December 2013, and following its signature in April 2014 the agreement is being provisionally applied pending ratification by Croatia, all EEA states, and the European Union. [11] [18] [40] As of November 2024, the agreement has been ratified by 30 out of 31 parties, all except the European Union. [2]

Future EU member states

There are nine recognised candidates for membership of the European Union: Turkey (since 1999), North Macedonia (2005), Montenegro (2010), Serbia (2012), Albania (2014), Moldova (2022), Ukraine (2022), Bosnia and Herzegovina (2022) and Georgia (2023). Kosovo (whose independence is not recognised by five EU member states) formally submitted its application for membership in 2022 and is considered a potential candidate by the European Union. [41] [42]

Faroe Islands

In mid-2005, representatives of the Faroe Islands hinted at the possibility of their territory joining the EFTA. [43] However, the ability of the Faroes to join is uncertain because, according to Article 56 of the EFTA Convention, only states may become members of the Association. [44] The Faroes, which form part of the Danish Realm, is not a sovereign state, and according to a report prepared for the Faroes Ministry of Foreign Affairs "under its constitutional status the Faroes cannot become an independent Contracting Party to the EEA Agreement due to the fact that the Faroes are not a state". [45] However, the report went on to suggest that it is possible that the "Kingdom of Denmark in respect of the Faroes" could join the EFTA. [45] The Danish Government has stated that the Faroes cannot become an independent member of the EEA as Denmark is already a party to the EEA Agreement. [45] The Faroes already have an extensive bilateral free trade agreement with Iceland, known as the Hoyvík Agreement.

Switzerland

A referendum of 1992 rejected this, and there is a prevalent opinion among EU/EEA countries that Swiss referendums would disrupt the EEA-EU cooperation, like has happened with the Switzerland-EU cooperation. [46]

A poll in December 2022 to mark 30 years since the 1992 EEA referendum indicated that 71% would vote for EEA participation if a referendum were held. [47] For common Swiss people, a major difference between EEA and the Swiss agreement, is that EEA includes free movement for services including roaming prices for mobile phones. A members bill about joining EEA in 2022 was mostly rejected by the Federal council (government) considering the present treaties better for Switzerland. [48]

European microstates

In November 2012, after the Council of the European Union had called for an evaluation of the EU's relations with the sovereign European microstates of Andorra, Monaco and San Marino, which they described as "fragmented", [49] the European Commission published a report outlining options for their further integration into the EU. [50] Unlike Liechtenstein, which is a member of the EEA via the EFTA and the Schengen Agreement, relations with these three states are based on a collection of agreements covering specific issues. The report examined four alternatives to the current situation: 1) a Sectoral Approach with separate agreements with each state covering an entire policy area, 2) a comprehensive, multilateral Framework Association Agreement (FAA) with the three states, 3) EEA membership, and 4) EU membership. The Commission argued that the sectoral approach did not address the major issues and was still needlessly complicated, while EU membership was dismissed in the near future because "the EU institutions are currently not adapted to the accession of such small-sized countries". The remaining options, EEA membership and an FAA with the states, were found to be viable and were recommended by the commission.

As EEA membership is currently only open to EFTA or EU members, the consent of existing EFTA member states is required for the microstates to join the EEA without becoming members of the EU. In 2011, Jonas Gahr Støre, the then Foreign Minister of Norway, which is an EFTA member state, said that EFTA/EEA membership for the microstates was not the appropriate mechanism for their integration into the internal market because their requirements differed from those of larger countries such as Norway, and suggested that a simplified association would be better suited for them. [51] Espen Barth Eide, Støre's successor, responded to the commission's report in late 2012 by questioning whether the microstates have sufficient administrative capabilities to meet the obligations of EEA membership. However, he stated that Norway was open to the possibility of EFTA membership for the microstates if they decide to submit an application, and that the country had not made a final decision on the matter. [52] [53] [54] [55] Pascal Schafhauser, the Counsellor of the Liechtenstein Mission to the EU, said that Liechtenstein, another EFTA member state, was willing to discuss EEA membership for the microstates provided their joining did not impede the functioning of the organisation. However, he suggested that the option of direct membership in the EEA for the microstates, outside both the EFTA and the EU, should be given consideration. [54]

On 18 November 2013, the EU Commission concluded that "the participation of the small-sized countries in the EEA is not judged to be a viable option at present due to the political and institutional reasons", and that Association Agreements were a more feasible mechanism to integrate the microstates into the internal market. [56]

Withdrawal of the United Kingdom

The United Kingdom, in a 2016 referendum, voted to withdraw from the European Union. Staying in the EEA, possibly eventually as an EFTA member, was an option suggested by the then Environment Secretary, Michael Gove. [57]

A 2013 research paper presented to the Parliament of the United Kingdom proposed a number of alternatives to EU membership which would continue to allow it access to the EU's internal market, including continued EEA membership as an EFTA member state, or the Swiss model of a number of bilateral treaties covering the provisions of the single market. [58] The United Kingdom was a co-founder of EFTA in 1960, but ceased to be a member upon joining the European Community. In the first meeting since the Brexit vote, EFTA reacted by saying both that it was open to a United Kingdom return and that it had many issues to work through [59] although the Norwegian Government later expressed reservations. [60] In January 2017, Theresa May, then the British prime minister, announced a 12-point plan of negotiating objectives and confirmed that the government of the United Kingdom would not seek continued permanent membership in the single market. [61] The United Kingdom could be allowed by other member states to join the EEA and EFTA but existing EEA members such as Norway would have concerns about taking the risk of opening a difficult negotiation with the EU that could lead them to lose their current advantages. [62] The Scottish Government has looked into membership of the EFTA to retain access to the EEA. [63] However, other EFTA states have stated that only sovereign states are eligible for membership, so it could only join if it became independent from the United Kingdom. [64]

The EEA EFTA States (Norway, Iceland, Liechtenstein) signed a Separation Agreement with the UK on 28 January 2020, which is understood to mirror the EEA-relevant parts of the EU-UK Withdrawal Agreement. [28] The withdrawal agreement stipulated a transition period, following the UK's formal withdrawal on 31 January 2020 and ending 31 December 2020, during which both the United Kingdom and the other EEA members remained bound by the existing obligations stemming from international agreements concluded by the EU, including the EEA Agreement. [28] In January and February 2020, the government of the United Kingdom ruled out a future alignment to the rules of the internal market, effectively ruling out EEA membership after the end of the transition period on 31 December 2020. [65] [66] [67]

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'. [68]

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. [10]

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. [69] 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).[ citation needed ]

Legislation

Supranational European Bodies-en.svg
An Euler diagram showing the relationships between various multinational European organisations and agreements

The non-EU members of the EEA (Iceland, Liechtenstein and Norway) have agreed to enact legislation similar to that passed in the EU in the areas of social policy, consumer protection, environment, company law and statistics.[ citation needed ] These are some of the areas covered by the former European Community (the "first pillar" of the European Union).

The non-EU members of the EEA are not represented in Institutions of the European Union such as the European Parliament or European Commission. This situation has been described as "fax democracy", with Norway waiting for their latest legislation to be faxed from the commission. [70] [71] However, EEA countries are consulted about new EU legislative proposals and participate in shaping legislation at an early stage. The EEA Agreement contains provisions for input from the EEA/EFTA countries at various stages before legislation is adopted, including consent at the EEA Joint Committee. Once approved at the EEA Joint Committee, it is part of the EEA Agreement, and the EFTA states within the EEA must implement it in their national law. [72]

Institutions

The EEA Joint Committee consists of the EEA-EFTA States plus the European Commission (representing the EU) and has the function of amending the EEA Agreement to include relevant EU legislation. An EEA Council meets twice yearly to govern the overall relationship between the EEA members.

Rather than setting up pan-EEA institutions, the activities of the EEA are regulated by the European Union institutions, as well as the EFTA Surveillance Authority and the EFTA Court. The EFTA Surveillance Authority and the EFTA Court regulate the activities of the EFTA members in respect of their obligations in the European Economic Area (EEA). The EFTA Surveillance Authority performs the European Commission's role as "guardian of the treaties" for the EFTA countries to ensure the EEA Agreement is being followed. The EFTA Court performs a similar role to the European Court of Justice's in that it resolves disputes under the EEA Agreement.

While the ECJ and European Commission are respectively responsible for the interpretation and application of the EEA Agreement in the EU (between EU member states and within EU member states), and the EFTA Court and EFTA Surveillance Authority are likewise respectively responsible for interpreting and monitoring the application of the EEA Agreement among the EEA-EFTA states (between the EEA-EFTA states and within the EEA-EFTA states), disputes between an EU state and an EEA-EFTA state are referred to the EEA Joint Committee rather to either court. Only if the Joint Committee cannot provide a resolution within three months, would the disputing parties jointly submit to the ECJ for a ruling (if the dispute concerns provisions identical to EU law) or to arbitration (in all other cases). [73]

The original plan for the EEA lacked the EFTA Court or the EFTA Surveillance Authority, as the "EEA court" (which would be composed of five European Court of Justice members and three members from EFTA countries and which would be functionally integrated with the ECJ) [74] and the European Commission were to exercise those roles. However, during the negotiations for the EEA agreement, the European Court of Justice informed the Council of the European Union (Opinion 1/91) that they considered that giving the EEA court jurisdiction with respect to EU law that would be part of the EEA law, would be a violation of the treaties, and therefore the current arrangement was developed instead. After having negotiated the Surveillance Authority, the ECJ confirmed its legality in Opinion 1/92.

The EFTA Secretariat is headquartered in Geneva, Switzerland. The EFTA Surveillance Authority has its headquarters in Brussels, Belgium (the same location as the headquarters of the European Commission), while the EFTA Court has its headquarters in Luxembourg (the same location as the headquarters of the European Court of Justice).

EEA and Norway Grants

The EEA and Norway Grants are the financial contributions of Iceland, Liechtenstein and Norway to reduce social and economic disparities in Europe. In the period from 2004 to 2009, €1.3 billion of project funding is made available for project funding in the 15 beneficiary states in Central and Southern Europe.

Established in conjunction with the 2004 enlargement of the European Economic Area (EEA), which brings together the EU, Iceland, Liechtenstein and Norway in the Internal Market, the EEA and Norway Grants were administered by the Financial Mechanism Office, which is affiliated to the EFTA Secretariat in Brussels.

See also

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The EFTA Surveillance Authority (ESA) monitors compliance with the Agreement on the European Economic Area (EEA) in Iceland, Liechtenstein and Norway (the EEA EFTA States). ESA operates independently of the States and safeguards the rights of individuals and undertakings under the EEA Agreement, ensuring free movement, fair competition, and control of state aid.

<span class="mw-page-title-main">Norway–European Union relations</span> Bilateral relations

Norway is not a member state of the European Union (EU). However, it is associated with the Union through its membership in the European Economic Area (EEA), signed in 1992 and established in 1994. Norway was a founding member of the European Free Trade Association (EFTA) in 1960, which was originally set up as an alternative to the European Economic Community (EEC), the main predecessor of the EU. Norway had considered joining both the EEC and the European Union, but opted to decline following referendums in 1972 and 1994. According to the European Social Survey conducted in 2018, 73.6% of Norwegians would vote 'No' in a referendum to join the European Union. Norway shares land borders with two EU member states, namely Finland and Sweden, and maritime borders with a third, Denmark.

The freedom of movement for workers is a policy chapter of the acquis communautaire of the European Union. The free movement of workers means that nationals of any member state of the European Union can take up an employment in another member state on the same conditions as the nationals of that particular member state. In particular, no discrimination based on nationality is allowed. It is part of the free movement of persons and one of the four economic freedoms: free movement of goods, services, labour and capital. Article 45 TFEU states that:

  1. Freedom of movement for workers shall be secured within the Community.
  2. Such freedom of movement shall entail the abolition of any discrimination based on nationality between workers of the Member States as regards employment, remuneration and other conditions of work and employment.
  3. It shall entail the right, subject to limitations justified on grounds of public policy, public security or public health:
  4. The provisions of this article shall not apply to employment in the public service.
<span class="mw-page-title-main">Microstates and the European Union</span> Relationship overview

Currently, all of the European microstates have some form of relations with the European Union (EU).

<span class="mw-page-title-main">Liechtenstein passport</span> Passport of the Principality of Liechtenstein

Liechtenstein passports are issued to nationals of Liechtenstein for the purpose of international travel. Beside serving as proof of Liechtenstein citizenship, they facilitate the process of securing assistance from Liechtenstein consular officials abroad.

<span class="mw-page-title-main">1995 enlargement of the European Union</span> Accession of Austria, Finland and Sweden to the European Union

The 1995 enlargement of the European Union saw Austria, Finland, and Sweden accede to the European Union (EU). This was the EU's fourth enlargement and came into effect on 1 January of that year. It is also known as the EFTA Enlargement round. All these states were previous members of the European Free Trade Association (EFTA) and had traditionally been less interested in joining the EU than other European countries. Norway had negotiated to join alongside the other three, but following the signing of the treaty, membership was turned down by the Norwegian electorate in the 1994 national referendum. Switzerland also applied for membership on 26 May 1992, but withdrew it after a negative referendum result on 6 December 1992.

<span class="mw-page-title-main">San Marino–European Union relations</span> Bilateral relations

Relations between the Republic of San Marino and the European Union (EU) began in February 1983. San Marino is completely surrounded by one EU member state, Italy.

<span class="mw-page-title-main">Monaco–European Union relations</span> Bilateral relations

Relations between the Principality of Monaco and the European Union (EU) are primarily conducted through France. Through that relationship Monaco directly participates in certain EU policies. Monaco is an integral part of the EU customs territory and VAT area, and therefore applies most measures on excise duties and VAT. Monaco borders one EU member state: France. However this relationship does not extend to external trade. Preferential trade agreements between the EU and third countries apply only to goods originating from the customs territory – Monaco may not claim EU origin in this respect.

<span class="mw-page-title-main">1973 enlargement of the European Communities</span> Accession of Denmark, Ireland and the United Kingdom to the European Communities

The 1973 enlargement of the European Communities was the first enlargement of the European Communities (EC), now the European Union (EU). Denmark, Ireland and the United Kingdom (UK) acceded to the EC on 1 January 1973. Gibraltar and Greenland also joined the EC as part of the United Kingdom and Denmark respectively, but the Danish Faroe Islands, the other British Overseas Territories and the Crown dependencies of the United Kingdom did not join the EC.

<span class="mw-page-title-main">United Kingdom membership of the European Economic Area</span>

The United Kingdom (UK) was a member of the European Economic Area (EEA) from 1 January 1994 to 31 December 2020, following the coming into force of the 1992 EEA Agreement. Membership of the EEA is a consequence of membership of the European Union (EU). The UK ceased to be a Contracting Party to the EEA Agreement after its withdrawal from the EU on 31 January 2020, as it was a member of the EEA by virtue of its EU membership, but retained EEA rights during the Brexit transition period, based on Article 126 of the withdrawal agreement between the EU and the UK. During the transition period, which ended on 31 December 2020, the UK and EU negotiated their future relationship.

<span class="mw-page-title-main">Passports of the EFTA member states</span>

Passports of the EFTA member states are passports issued by the European Free Trade Association (EFTA) member states Iceland, Liechtenstein, Norway and Switzerland. EFTA is in this article used as a common name for these countries.

In British politics, the "Norway-plus model" was a proposal for a post-Brexit settlement, which the British government did not pursue. Proposed in November 2018 as an alternative to the Chequers plan, it would have consisted of membership of the European Free Trade Association (EFTA) and of membership of the European Economic Area (EEA) as an EFTA member state, combined with a separate customs union with the EU to create a trade relationship similar to that between the EU and its member states today, with the exception of the political representation in the EU's bodies. Michel Barnier, the EU's Chief Negotiator, has always said that a model that combined EEA/EFTA and a customs union was one that he would be happy to consider.

<span class="mw-page-title-main">Passports in Europe</span> Overview of passports issued in European countries

Passports in Europe are issued by each state individually, e.g. the Netherlands or United Kingdom. In general, passports issued in Europe either grant the holder the right of freedom of movement within the European Economic Area, to those that don't. The majority of European states are members of the European Union, and therefore issue EU passports.

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