European Economic Area (EEA)

The European Economic Area, or EEA, is made up of the Member States of the European Union (EU) along with three countries from the European Free Trade Association (EFTA). The EEA Agreement came into effect on January 1, 1994, with the aim of enhancing trade and economic ties between the involved parties. It primarily focuses on the four key components of the internal market: the free movement of goods, people, services, and capital.

Member countries of the EEA include Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. The EEA also encompasses EU nations and the EFTA countries of Iceland, Liechtenstein, and Norway, allowing them to participate in the EU’s single market.

Switzerland, which previously took part in the single market, was neither an EU nor an EEA member. Swiss nationals enjoyed the same rights to live and work in EEA countries as other EEA citizens. However, Switzerland is no longer involved in the European Economic Area, and Croatia has recently applied for membership.

The European Economic Area serves as a free trade zone between the EU and EFTA. The EEA outlines trade agreements that facilitate the movement of goods, individuals, services, and capital among member countries. In 1992, EFTA member states (excluding Switzerland) and EU members entered into this agreement, thereby extending the European internal market to include Iceland, Liechtenstein, and Norway.

Currently, the organization of the EEA is managed by various divisions, including legislative, executive, judicial, and consultative bodies, all comprising representatives from multiple EEA member states.

Citizens of EEA member countries enjoy specific privileges that are not available to those from non-EEA nations. According to the EFTA website, “The free movement of persons is one of the core rights guaranteed in the European Economic Area (EEA). It is perhaps the most important right for individuals, as it gives citizens of the 31 EEA countries the opportunity to live, work, establish a business, and study in any of these countries.”

This essentially means that citizens from any member country can travel freely to other member nations, whether for short visits or permanent relocation. However, these individuals maintain their citizenship from their home country and cannot apply for citizenship in their new country of residence. Furthermore, EEA regulations also address professional qualifications and social security coordination to facilitate the free movement of people among member states. These regulations are crucial for sustaining the economies and governance of individual countries while enabling the effective movement of individuals.

The EEA Agreement and the European Union (EU) are distinct entities. The EEA agreement pertains to the single market and its associated laws, while the EU encompasses both economic and political dimensions. All regulations that EEA countries must adhere to are established by the EU, meaning that EEA/EFTA countries do not have a voice in the creation of the laws they are obligated to implement. Additionally, EEA countries are required to make financial contributions to the EU, although these are less than those required from EU member states.