In this article, We learn about “European Economic Area (EEA) “.Let’s Go!
European Economic Area, abbreviated as EEA, is an association composed of three countries of the European Union (EU) and the European Free Trade Area (European Free Trade Area) alliance).
The European Economic Area Agreement entered into force on January 1, 1994.
It aims to strengthen trade and economic relations between the parties, focusing primarily on the four fundamental pillars of the internal market, namely free movement of goods, people, services and capital.
Countries belonging to the European Economic Area include Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
European Economic Area (EEA)
The European Economic Area includes the EU countries plus Iceland, Liechtenstein and Norway. It enables them to become part of the EU single market.
Switzerland, which previously participated, is neither an EU nor an EEA member state, but is part of the single market, so Swiss nationals have the same rights as other EEA nationals to live and work in EEA countries.
However, Switzerland no longer participates in the European Economic Area. Now, Croatia has submitted its application to participate.
EEA Responsibilities: Member Benefits
The European Economic Area is a free trade area between the European Union and the European Free Trade Association (EFTA). The details of the trade agreement set out in the European Economic Area include the freedom of movement of products, people, services and currency between countries.
In 1992, the EFTA member states (except Switzerland) and EU member states signed the agreement, thereby extending the European internal market to Iceland, Liechtenstein and Norway.
Today, the EEA hands over its organization to multiple ministries, including legislative, executive, judicial and advisory, all of which include representatives from multiple EEA member states.
What does the European Economic Area mean to citizens
Citizens of EEA member states can enjoy certain privileges not available in non-EEA countries.
According to EFTA website:
“Free movement of persons is one of the core rights guaranteed by the European Economic Area (EEA). It is perhaps the most important right for individuals, as it provides citizens of the 31 EEA countries with the opportunity to live, work, and Opportunities to start a business and learn.”
Basically, citizens of any member state are free to travel to other member states, whether for a short visit or permanent relocation.
However, these residents still retain citizenship of their country of origin and cannot apply for citizenship in their new place of residence.
In addition, EEA regulations govern professional qualifications and social security coordination to support the free movement of persons between member states.
Since both are necessary to sustain the economies and governments of various countries, these regulations are essential to effectively allow the free movement of people.
The difference between the European Economic Area and the European Union
The European Economic Area (EEA) Agreement and the European Union (EU) are not the same thing.
The EEA agreement deals with the single market and its related laws, while the EU deals with economics and politics.
All regulations that EEA countries must comply with are set by the EU, which effectively means that EEA/EFTA countries have no say in setting the laws that need to be implemented.
EEA countries must also make financial contributions to the EU, albeit smaller amounts than those of EU member states.
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