The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European states: Iceland, Liechtenstein, Norway and Switzerland. The organization operates in parallel with the European Union (EU), and all four member states participate in the European single market and are part of the Schengen Area. They are not, however, party to the European Union Customs Union.
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 (EFTA). The EEA links the EU member states and three of the four EFTA states 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. 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.
The European Union (EU) has expanded a number of times throughout its history by way of the accession of new member states to the Union. To join the EU, a state needs to fulfil economic and political conditions called the Copenhagen criteria, which require a stable democratic government that respects the rule of law, and its corresponding freedoms and institutions. According to the Maastricht Treaty, each current member state and the European Parliament must agree to any enlargement. The process of enlargement is sometimes referred to as European integration. This term is also used to refer to the intensification of co-operation between EU member states as national governments allow for the gradual harmonisation of national laws.
The European Union has a number of relationships with foreign states. According to the European Union's official site, and a statement by Commissioner Günter Verheugen, the aim is to have a ring of countries, sharing EU's democratic ideals and joining them in further integration without necessarily becoming full member states.
European integration is the process of industrial, economic, political, legal, social, and cultural integration of states wholly or partially in Europe, or nearby. European integration has primarily but not exclusively come about through the European Union and its policies.
A customs union is the principal area of robust formal agreement between the Principality of Andorra and the European Union (EU). Andorra borders two EU member states: France and Spain.
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.
The most recent enlargement of the European Union saw Croatia become the European Union's 28th member state on 1 July 2013. The country applied for EU membership in 2003, and the European Commission recommended making it an official candidate in early 2004. Candidate country status was granted to Croatia by the European Council in mid-2004. The entry negotiations, while originally set for March 2005, began in October that year together with the screening process.
Currently, all of the European microstates have some form of relations with the European Union (EU).
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.
1 These countries are currently not participating in the EU's single market (EEA), but the EU has common external Customs Union agreements with Turkey, Andorra and San Marino. Monaco participates in the EU customs union through its relationship with France; its ports are administered by the French. Vatican City has a customs union in effect with Italy.
2 Monaco, San Marino and Vatican City are not members of Schengen, but act as such via their open borders with France and Italy, respectively.
3 Switzerland is not an official member of EEA but has bilateral agreements largely with same content, making it virtual member.
The Inner Six refers to the six founding member states of the European Union, namely Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. They were the original members of the European Communities, which were later succeeded by the European Union. Named for their location on a map of western Europe, the Inner Six contrasted with the "Outer Seven", which pursued a free-trade system.
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.
Relations between the Principality of Liechtensteinand the European Union (EU) are shaped heavily by Liechtenstein's participation in the European Economic Area (EEA).
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.
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.
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.
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.
