European Economic Area

The European Economic Area (EEA) was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association (EFTA) and the European Community, later the European Union (EU).^[1] Specifically, it allows Iceland, Liechtenstein and Norway to participate in Europe's single market without having to join the Union. In exchange, they are obliged to adopt certain EU internal market legislation.

Membership

Further information: EU enlargement to EFTA states

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.^[2][3] On 6 December 1992, Swiss voters rejected the ratification of the agreement in a constitutionally-mandated referendum.^[4] Switzerland is instead linked to the EU by a series of bilateral agreements.On 1 January 1995, three erstwhile members of EFTA—Austria, Finland and Sweden—acceded to the European Union, which superseded the European Community upon the entry into force of the Maastricht Treaty on 1 November 1993.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.^[5] At present, the contracting parties to the EEA Agreement are the EU and its 27 members plus Iceland, Liechtenstein and Norway.

Freedoms and obligations

The EEA is based on the same "four freedoms" as the European Community: the free movement of goods, persons, services, and capital among the EEA countries. Thus, the EFTA countries that are part of the EEA enjoy free trade with the European Union.

As a counterpart, these countries have to adopt part of the Law of the European Union. These states have little influence on decision-making processes in Brussels.

The EFTA countries that are part of the EEA do not bear the financial burdens associated with EU membership, although they contribute financially to the European single market. 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).

EFTA countries do not receive any funding from EU policies and development funds

Legislation

A clickable Euler diagram showing the relationships between various multinational European organisations.v • d • e

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. These are some of the areas covered by the European Community (the "first pillar" of the European Union).

The non EU members of the EEA have no representation in Institutions of the European Union such as the European Parliament or European Commission. In February 2001, Norwegian Prime Minister Jens Stoltenberg described the situation as a “fax democracy”, with Norway waiting for their latest legislation to be faxed from the Commission.^[6]

Institutions

A Joint Committee consisting of the EEA-EFTA States plus the European Commission (representing the EU) has the function of extending relevant EU law to the non EU members. 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 EFTA Surveillance Authority and the EFTA Court, which parallel the work of the EU's European Commission and European Court of Justice. See EEA institutions for further information.

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 2004- 2009, €1.3 billion of project funding is made available for project funding in the 15 beneficiary states in Central and Southern Europe.

The EEA and Norway Grants were 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.

See also

• EudraVigilance
• Free trade areas in Europe
  • Central European Free Trade Agreement
• EU enlargement to EFTA states
  • Iceland and the European Union
  • Norway and the European Union
  • Liechtenstein and the European Union
  • Switzerland and the European Union
• Parallel importation
• Schengen Agreement
• Trade bloc

References

External links

• More about the EEA on the website of the Mission of Norway to the EU
• EFTA Secretariat
• EEA Grants and Norway Grants
• EFTA Surveillance Authority
• The EU and the European Economic Area Europa (web portal): External Relations