Origins and Membership:
– EFTA states, led by Sweden, explored joining the EEC in the late 1980s.
– Jacques Delors proposed the European Economic Area in 1989.
– The EEA Agreement was signed in Porto in 1992 by 7 EFTA states and 12 EC member states.
– Switzerland’s rejection of the EEA agreement in 1992 hindered full integration.
– Membership has grown to 30 states, including 27 EU states and 3 EFTA states.
– Croatia provisionally applied the EEA agreement in April 2014.
Rights, Regulations, and Legislation:
– EEA enables free movement of persons, goods, services, and capital.
– EFTA states in the EEA adopt most EU single market legislation.
– EEA countries must adopt part of EU law and influence new policies.
– Agriculture and fisheries are not covered by the EEA.
– Non-EU EEA members enact legislation similar to the EU in social policy, consumer protection, and more.
– EEA countries contribute to reducing social and economic disparities in the EEA.
Enlargement and Ratification:
– EEA was established in 1994 with 17 states and 2 European Communities.
– Membership has grown to 30 states, including 27 EU states and 3 EFTA states.
– Croatia provisionally applies the EEA agreement.
– Switzerland has bilateral agreements with the EU instead of EEA membership.
– EFTA states decide individually to join the EEA Agreement.
– Efforts and negotiations towards closer EU relations by candidate countries.
Future Enlargement and EU Member States:
– Nine recognized EU membership candidates include Turkey, North Macedonia, Montenegro, Serbia, Albania, Moldova, Ukraine, Bosnia and Herzegovina, and Georgia.
– Kosovo submitted its membership application in 2022.
– The 2004 and 2007 EU enlargements saw countries acceding to the EU and EEA.
– The EU evaluates potential candidates based on various criteria.
– When a state joins the EU, they must apply to join the EEA.
Institutions and Agreements:
– EEA Joint Committee includes EEA-EFTA States and the EU Commission.
– EEA activities are regulated by EU institutions, EFTA Surveillance Authority, and EFTA Court.
– EEA and Norway Grants reduce social and economic disparities in Europe.
– EEA EFTA States signed a Separation Agreement with the UK in January 2020.
– Funding in Central and Southern Europe was available from 2004 to 2009 in 15 beneficiary states.
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. 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. 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.
European Economic Area
| |
|---|---|
 EU states which form part of the EEA EFTA states which form part of the EEA | |
|
|
| Member states | 3 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 |
• Per capita | 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. 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 and in the EEA Agreement.
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. 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. 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). 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. 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.
