European Economic Area facts for kids

"EEA" redirects here. For other uses, see EEA (disambiguation).

Quick facts for kids European Economic Area Европейска икономическа зона (Bulgarian) Europski gospodarski prostor (Croatian) Evropský hospodářský prostor (Czech) Det Europæiske Økonomiske Samarbejdsområde (Danish) Europese Economische Ruimte (Dutch) Euroopa Majanduspiirkond (Estonian) Euroopan talousalue (Finnish) Espace économique européen (French) Europäischer Wirtschaftsraum (German) Ευρωπαϊκός Οικονομικός Χώρος (Greek) Európai Gazdasági Térség (Hungarian) Evrópska efnahagssvæðið (Icelandic) Limistéar Eorpach Eacnamaíoch (Irish) Spazio economico europeo (Italian) Eiropas Ekonomikas zona (Latvian) Europos ekonominės erdvės (Lithuanian) Europäesche Wirtschaftsraum (Luxembourgish) Żona Ekonomika Ewropea (Maltese) Det europeiske økonomiske samarbeidsområde (Norwegian) Europejski Obszar Gospodarczy (Polish) Espaço Económico Europeu (Portuguese) Spațiul Economic European (Romanian) Európsky hospodársky priestor (Slovak) Evropski gospodarski prostor (Slovene) Espacio Económico Europeo (Spanish) Europeiska ekonomiska samarbetsområdet (Swedish)
EU states which form part of the EEA EFTA states which form part of the EEA
Institutions • Governance • Regulators • Courts	EEA Joint Committee EEA Council EC EFTA SA ECJ EFTA Court
Member states	27 EU member states Austria Belgium Bulgaria Croatia (provisionally) Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden 3 EFTA member states Iceland Liechtenstein Norway
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 European Economic Area (EEA) is a special agreement between countries in Europe. It helps extend the European Union's (EU) single market to some non-EU countries. The EEA connects EU countries with three countries from the European Free Trade Association (EFTA): Iceland, Liechtenstein, and Norway.

These countries follow the same basic rules for trade and movement. This means people, goods, services, and money can move freely between them. For example, you could live, work, or study in any EEA country. The EEA agreement started on January 1, 1994. It helps promote strong trade and economic ties.

The EFTA countries in the EEA do not join the EU's farming or fishing policies. They also don't have a customs union, which means they can set their own import taxes. While the EEA is not part of the Schengen Agreement, all four EFTA countries are part of it through separate deals.

How the EEA Started
Who is in the EEA?
- Important Agreements
- Countries in the EEA Agreement
Future of the EEA
- New EU Members and the EEA
  - Croatia's Journey to the EEA
- Other Potential Members
What are the Rights and Duties of EEA Members?
How EEA Laws are Made
EEA Institutions
EEA and Norway Grants
Withdrawal of the United Kingdom
See also

How the EEA Started

In the late 1980s, countries in the EFTA group, especially Sweden, wanted to join the European Economic Community (EEC). The EEC was the group that later became the European Union. Many businesses in EFTA countries wanted closer ties with the EEC. They thought it would help their economies.

At that time, Jacques Delors, who led the European Commission, suggested creating a "European Economic Space." This idea later became the European Economic Area we know today. He thought this would be a good way to work together without adding too many new members to the EEC too quickly.

However, when the EEA was set up in 1994, some things changed. Switzerland, an EFTA member, voted against joining the EEA. Also, several EFTA countries like Austria, Finland, and Sweden decided to join the EU instead. This meant the EEA started with fewer members than first planned.

Who is in the EEA?

EU states which form part of the EEA EU state which provisionally applies the EEA agreement EFTA states which form part of the EEA EFTA state which signed the EEA agreement but did not join State which has withdrawn from the EEA

The EEA Agreement was signed on May 2, 1992. It included the seven EFTA states, the European Community (EC), and its 12 member countries. Switzerland's voters rejected the agreement in December 1992. So, Switzerland works with the EU through other special agreements.

On January 1, 1995, Austria, Finland, and Sweden left EFTA to join the European Union. Liechtenstein's full participation in the EEA started a bit later, on May 1, 1995.

Today, the EEA includes 27 EU member states and three EFTA countries: Iceland, Liechtenstein, and Norway. Croatia, the newest EU member, is still in the process of fully joining the EEA. Its agreement is being provisionally applied while all countries finish approving it.

Important Agreements

The EEA has had a few important agreements over time.

The main EEA Agreement was signed in 1992 and started in 1994.
An "Adjusting Protocol" was added in 1993. This allowed the agreement to start even without Switzerland.
Later agreements were made to include new EU members. This happened in 2003 for 10 new states and in 2007 for two more.
An agreement for Croatia to join was signed in 2014. It is still waiting for all countries to approve it.

Countries in the EEA Agreement

Many countries have signed and approved the EEA Agreement.

State	Signed	Ratified	Entered into force	Exit	Notes
Austria	2 May 1992	15 October 1992	1 January 1994		EU member (from 1 January 1995) Acceded to the EEA as an EFTA member
Belgium	2 May 1992	9 November 1993	1 January 1994		EU member
Bulgaria	25 July 2007	29 February 2008	9 November 2011		EU member
Croatia	11 April 2014	24 March 2015	No		EU member (from 1 July 2013) Provisional application (as a participating non-EEA state) from 12 April 2014
Cyprus	14 October 2003	30 April 2004	6 December 2005		EU member
Czech Republic	14 October 2003	10 June 2004	6 December 2005		EU member
Denmark	2 May 1992	30 December 1992	1 January 1994		EU member
European Union	2 May 1992	13 December 1993	1 January 1994		Originally as European Economic Community and European Coal and Steel Community
Estonia	14 October 2003	13 May 2004	6 December 2005		EU member
Finland	2 May 1992	17 December 1992	1 January 1994		EU member (from 1 January 1995) Acceded to the EEA as an EFTA member
France	2 May 1992	10 December 1993	1 January 1994		EU member
Germany	2 May 1992	23 June 1993	1 January 1994		EU member
Greece	2 May 1992	10 September 1993	1 January 1994		EU member
Hungary	14 October 2003	26 April 2004	6 December 2005		EU member
Iceland	2 May 1992	4 February 1993	1 January 1994		EFTA member
Ireland	2 May 1992	29 July 1993	1 January 1994		EU member
Italy	2 May 1992	15 November 1993	1 January 1994		EU member
Latvia	14 October 2003	4 May 2004	6 December 2005		EU member
Liechtenstein	2 May 1992	25 April 1995	1 May 1995		EFTA member
Lithuania	14 October 2003	27 April 2004	6 December 2005		EU member
Luxembourg	2 May 1992	21 October 1993	1 January 1994		EU member
Malta	14 October 2003	5 March 2004	6 December 2005		EU member
Netherlands	2 May 1992	31 December 1992	1 January 1994		EU member
Norway	2 May 1992	19 November 1992	1 January 1994		EFTA member
Poland	14 October 2003	8 October 2004	6 December 2005		EU member
Portugal	2 May 1992	9 March 1993	1 January 1994		EU member
Romania	25 July 2007	23 May 2008	9 November 2011		EU member
Slovakia	14 October 2003	19 March 2004	6 December 2005		EU member
Slovenia	14 October 2003	30 June 2005	6 December 2005		EU member
Spain	2 May 1992	3 December 1993	1 January 1994		EU member
Sweden	2 May 1992	18 December 1992	1 January 1994		EU member (from 1 January 1995) Acceded to the EEA as an EFTA member
Switzerland	2 May 1992	No	No		EFTA member EEA ratification rejected in a 1992 referendum Removed as contracting party in 1993 protocol
( United Kingdom)	(2 May 1992)	(15 November 1993)	(1 January 1994)	31 January 2020	Former EEA and EU member.

Future of the EEA

New EU Members and the EEA

When a country joins the EU, it usually also joins the EEA. However, this doesn't happen automatically. For example, when 10 countries joined the EU in 2004, their EEA membership started provisionally. It took time for it to become official. The same happened with Bulgaria and Romania in 2007.

Croatia's Journey to the EEA

Croatia joined the EU in 2013. It applied to join the EEA in 2012. Negotiations started in 2013. The goal was for Croatia to join both the EU and EEA at the same time. This didn't happen, but an agreement was reached in late 2013. Croatia has been applying the agreement provisionally since April 2014. It is still waiting for all EEA countries to officially approve its membership.

Other Potential Members

Several other countries are candidates to join the European Union. If they join the EU, they would then apply to join the EEA. These include Turkey, North Macedonia, Montenegro, Serbia, Albania, Moldova, Ukraine, Bosnia and Herzegovina, and Georgia. Kosovo is also considered a potential candidate.

Faroe Islands and the EEA

The Faroe Islands have shown interest in joining EFTA. However, the Faroe Islands are not an independent country. They are part of Denmark. EFTA rules say only independent states can be members. So, it's unclear if they could join the EEA on their own.

Switzerland's Relationship with the EU

Switzerland is an EFTA member but chose not to join the EEA. In 1992, Swiss voters rejected the EEA agreement. Instead, Switzerland has many separate agreements with the EU. These agreements allow Switzerland to be part of some parts of the single market. A recent poll showed many Swiss people would now vote to join the EEA.

Tiny European Countries and the EEA

The EU has looked at how it works with very small countries like Andorra, Monaco, and San Marino. These countries have many separate agreements with the EU. The EU considered different ways for them to work more closely, including joining the EEA. However, it was decided that joining the EEA might be too complex for these small countries right now. They might have special "Association Agreements" instead.

What are the Rights and Duties of EEA Members?

The EEA is based on four key freedoms, just like the EU's single market. These are:

Free movement of goods: Products can be traded easily between EEA countries.
Free movement of persons: People can live, work, study, or start a business in any EEA country. This is a very important right.
Free movement of services: Companies can offer their services across EEA borders.
Free movement of capital: Money can be invested and moved freely.

Because of these freedoms, non-EU EEA countries have free trade with the EU. In return, they must follow many of the EU's laws. However, they also get to help shape new laws and policies.

Farming and fishing are not part of the EEA agreement. This is important for countries like Norway and Iceland. It means they don't have to follow the EU's common fishing rules. This allows them to manage their own fishing quotas.

Non-EU EEA countries also contribute money to help reduce differences in wealth across Europe. This is done through the EEA Grants scheme. Norway also has its own "Norway Grants" scheme.

How EEA Laws are Made

A clickable Euler diagram^[file] showing the relationships between various multinational European organisations and agreements

The non-EU EEA members (Iceland, Liechtenstein, and Norway) agree to adopt laws similar to those in the EU. These laws cover areas like social policy, consumer protection, environment, and company rules.

These non-EU EEA countries do not have direct representatives in EU institutions like the European Parliament. Some people call this "fax democracy." This is because Norway, for example, waits for new laws to be sent from the European Commission. However, EEA countries are consulted early on about new EU laws. They have a say in shaping these laws. Once a law is approved by the EEA Joint Committee, it becomes part of the EEA Agreement. Then, the EFTA states in the EEA must make it a law in their own country.

EEA Institutions

The EEA Joint Committee includes representatives from the EEA-EFTA states and the European Commission. Its job is to update the EEA Agreement with new EU laws. The EEA Council meets twice a year. It oversees the overall relationship between EEA members.

Instead of creating new institutions for the whole EEA, the work is managed by EU institutions. It is also managed by the EFTA Surveillance Authority and the EFTA Court. These two bodies make sure that EFTA members follow their EEA duties. The EFTA Surveillance Authority acts like the European Commission for EFTA countries. The EFTA Court is similar to the European Court of Justice. It helps solve disagreements under the EEA Agreement.

If there's a disagreement between an EU country and an EEA-EFTA country, it goes to the EEA Joint Committee. If they can't solve it, it might go to the European Court of Justice or to arbitration.

The EFTA Secretariat is in Geneva, Switzerland. The EFTA Surveillance Authority is in Brussels, Belgium. The EFTA Court is in Luxembourg.

EEA and Norway Grants

The EEA and Norway Grants are financial contributions from Iceland, Liechtenstein, and Norway. These funds help reduce social and economic differences in Europe. For example, from 2004 to 2009, €1.3 billion was given to projects in 15 countries in Central and Southern Europe.

These grants were set up when the EEA expanded in 2004. They are managed by the Financial Mechanism Office, which is part of the EFTA Secretariat in Brussels.

Withdrawal of the United Kingdom

The United Kingdom voted to leave the European Union in 2016. Staying in the EEA, perhaps as an EFTA member, was an idea discussed. The UK was a founding member of EFTA in 1960. However, it left EFTA when it joined the European Community.

After the Brexit vote, EFTA said it was open to the UK rejoining. However, Norway, an existing EEA member, had concerns. They worried that adding the UK could make their relationship with the EU more difficult.

In 2017, the British Prime Minister, Theresa May, said the UK would not seek to stay in the single market. This meant the UK would not try to remain in the EEA. The Scottish Government considered joining EFTA to keep access to the EEA. But other EFTA states said only independent countries can join.

The UK officially left the EU on January 31, 2020. There was a transition period until December 31, 2020. During this time, the UK and other EEA members still followed the existing agreements. After this period, the UK decided not to align with the internal market rules. This effectively ended its EEA membership.