Key Takeaways:
- The EEA ensures the free movement of persons, goods, services, and capital within the European Single Market.
- Comprising 31 countries, including 28 EU states and 3 EFTA members: Iceland, Liechtenstein, and Norway.
- EEA members adopt EU legislation for the Single Market but are exempt from policies like agriculture, fisheries, and foreign security.
What is the European Economic Area (EEA)?
The European Economic Area (EEA) is a collaboration of 30 countries that work together to ensure the free movement of persons, goods, services, and capital within a unified European Single Market. Established through the Treaty of 1992, the EEA integrates member states in a harmonized economic space, facilitating economic cooperation and shared regulatory standards.
Who Are the EEA Member States?
The EEA comprises 31 countries, including 28 EU member states and three additional EFTA member states: Iceland, Liechtenstein, and Norway. Here is a complete list of EEA countries, including some essential notes:
- Austria
- Belgium
- Bulgaria
- Croatia
- Czechia
- Cyprus (except Northern Cyprus)
- Denmark
- Estonia
- Finland
- France
- Germany
- Greece
- Hungary
- Iceland (Non-EU country)
- Ireland
- Italy
- Latvia
- Liechtenstein (Non-EU country)
- Lithuania
- Luxembourg
- Malta
- Netherlands
- Norway (Non-EU country)
- Poland
- Portugal
- Romania
- Slovakia
- Slovenia
- Spain
- Sweden
- United Kingdom (Agreement applied to Gibraltar)
What is the Primary Objective of the EEA?
The European Economic Area (EEA) aims to extend the EU’s internal market to the EFTA states, allowing for:
- Free movement of persons
- Free movement of goods
- Free movement of services
- Free movement of capital
These core principles enable residents to live, work, and move freely among the EEA countries, fostering greater economic integration and cooperation.
Major Agreements in the EEA
Several pivotal agreements shape the EEA’s framework:
EEA Agreement
Signed on May 2, 1992, by 19 states + EEC and ECSC, the EEA Agreement came into force on January 1, 1994, with the adjustments made by the 1993 Protocol.
Adjusting Protocol
This protocol was signed on March 17, 1993, by 18 states + EEC and ECSC and came into effect on January 1, 1994, without Switzerland’s signature.
Participation of Ten New States
An agreement welcomed ten new states into the EEA on October 14, 2003, which took effect on December 6, 2005, after the 2004 EU enlargement.
Participation of Two New States
On July 25, 2007, two more states joined the EEA, with the agreement becoming effective on November 9, 2011, following the 2007 EU enlargement.
Participation of One New State
On April 11, 2014, one new state joined under an agreement that has not yet come into force following the 2013 EU enlargement.
How Does the EEA Differ from the EU?
While the European Economic Area and the European Union (EU) share many similarities, they differ primarily in their scope and membership:
- The EEA includes three non-EU countries: Iceland, Liechtenstein, and Norway.
- EEA members must adopt EU legislation related to the Single Market but are exempt from certain EU policies, including:
- Common Agriculture and Fisheries
- Customs Union
- Common Trade Policy
- Common Foreign and Security Policy
- Justice and Home Affairs (although current EEA States are part of the Schengen area)
- Direct and Indirect Taxation
- Economic and Monetary Union
This framework allows EEA countries to benefit from economic integration while maintaining certain degrees of national autonomy.
What About the EEA and EFTA?
The European Free Trade Association (EFTA) comprises four countries: Iceland, Liechtenstein, Norway, and Switzerland.
- Three of these (Iceland, Liechtenstein, and Norway) are part of the EEA.
- Switzerland, an EFTA member, is neither part of the EU nor the EEA.
To join the EEA, countries typically need to join EFTA first. Although EFTA members do not automatically gain access to the Single Market, Switzerland maintains bilateral agreements outside of the EFTA framework.
How Does the EEA Compare to the Schengen Area?
The Schengen Area focuses on abolishing border checks among member countries to facilitate easier and faster travel. In contrast, the EEA is about the free movement of goods, services, capital, and people within the market. While most EEA countries are part of the Schengen Area, some differences remain:
EEA But Not Schengen
- Bulgaria
- Croatia
- Cyprus
- Ireland
- Romania
Conversely, Switzerland is part of the Schengen Area but not the EEA and still participates in internal markets due to special agreements.
How Does the EEA Relate to the Eurozone?
The Eurozone consists of EU member states that use the Euro as their currency. There are currently 19 Eurozone countries:
- Austria
- Belgium
- Cyprus
- Estonia
- Finland
- France
- Germany
- Greece
- Ireland
- Italy
- Latvia
- Lithuania
- Luxembourg
- Malta
- Netherlands
- Portugal
- Slovakia
- Slovenia
- Spain
None of the EFTA member states adopt the Euro as their currency, while several EU and EEA countries do.
Conclusion
The European Economic Area is a significant economic integration that facilitates the free flow of goods, services, capital, and people among its 31 member countries. Although similar to the EU, the EEA includes non-EU countries that benefit from market access without being bound by certain EU policies. Understanding the EEA’s intricate relationships with the EU, EFTA, Schengen Area, and Eurozone is crucial for grasping the broader scope of European economic cooperation.
For more details on the EEA and related policies, you can refer to the EEA Agreement on the European Union’s official website.
By fostering economic and regulatory alignment among its members, the EEA continues to be a cornerstone of European economic stability and growth, offering numerous opportunities for businesses and individuals alike.
Learn Today:
Glossary of Immigration Terms
- European Economic Area (EEA):
A collaborative economic zone established by the Treaty of 1992, comprising 30 countries that participate in the European Single Market, ensuring the free movement of persons, goods, services, and capital. - European Free Trade Association (EFTA):
An intergovernmental organization composed of Iceland, Liechtenstein, Norway, and Switzerland, which promotes free trade and economic integration. Except for Switzerland, EFTA countries are part of the EEA. - EEA Agreement:
A treaty signed on May 2, 1992, that came into force on January 1, 1994, integrating EFTA states with EU member states to create a unified market for economic cooperation. - Schengen Area:
A region comprising 26 European countries that have abolished passport and other types of border control at their mutual borders to facilitate easier travel. Not all EEA members are part of the Schengen Area. - Eurozone:
A monetary union of 19 EU member states that have adopted the Euro (€) as their currency. While several EU and EEA countries use the Euro, EFTA member states do not.
This Article In A Nutshell:
The European Economic Area (EEA) includes 30 countries working together for free movement of people, goods, services, and capital within a unified market. Formed in 1994, it aligns EU and three EFTA states—Norway, Iceland, and Liechtenstein—into a single economic space, enhancing cooperation and regulatory standards.
— By VisaVerge.com
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