European Economic Area

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European Economic Area members

The European Economic Area (EEA) is an international agreement which enables the extension of the European Union's single market to non-EU member states. The EEA was established on 1 January 1994 following an agreement between the European Free Trade Association (EFTA) and the European Union (EU). The EEA unites the EU member states and three EFTA states—Iceland, Liechtenstein, and Norway—into an internal market governed by the same basic rules. These rules aim to enable the free movement of goods, services, capital, and people within the EEA.

History

The EEA was created to allow EFTA countries to participate in the EU's internal market without having to join the EU. The agreement was signed on 2 May 1992 and came into force on 1 January 1994. Initially, the EEA included all EFTA countries except Switzerland, which rejected the agreement in a referendum in December 1992.

Membership

The EEA includes all 27 EU member states and three of the four EFTA member states: Iceland, Liechtenstein, and Norway. Switzerland is not a member of the EEA but has a series of bilateral agreements with the EU that allow it to participate in certain aspects of the EU's single market.

Structure and Functioning

The EEA Agreement provides for the inclusion of EU legislation covering the four freedoms—the free movement of goods, services, persons, and capital—throughout the 30 EEA states. The EEA Joint Committee, consisting of representatives from the EEA EFTA States and the European Commission, is responsible for the management of the EEA Agreement and the incorporation of EU legislation into the EEA Agreement.

The EEA Council, which meets twice a year, provides political impetus for the development of the EEA Agreement and guidelines for the EEA Joint Committee. The EFTA Surveillance Authority and the EFTA Court ensure that EEA EFTA states comply with their obligations under the EEA Agreement.

Economic and Social Cohesion

The EEA Agreement also aims to reduce economic and social disparities within the EEA. The EEA and Norway Grants are financial mechanisms through which Iceland, Liechtenstein, and Norway contribute to reducing social and economic disparities in the EEA. These grants support projects in areas such as environmental protection, climate change, civil society, and human and social development.

Related Pages

• European Union
• European Free Trade Association
• Single market
• Free movement of goods
• Free movement of services
• Free movement of capital
• Free movement of persons
• EFTA Surveillance Authority
• EFTA Court
• EEA and Norway Grants