The European Economic Area (EEA) serves several purposes, primarily focused on fostering economic cooperation and integration between the European Union (EU) and non-EU member states.
Single market access: The EEA provides non-EU countries with access to the EU's single market. This facilitates the free movement of goods, services, capital, and people between the EU member states and the EEA countries (currently Iceland, Liechtenstein, and Norway). Single market access enhances economic opportunities and trade between participating countries.
Harmonisation of regulations: EEA member states agree to adopt a significant portion of EU laws and regulations related to the single market. This harmonisation ensures a common regulatory framework, reducing trade barriers and making it easier for businesses to operate across borders. It helps create a level playing field for companies in both the EU and EEA.
Free movement of persons: EEA member states participate in the Schengen Agreement, allowing for the free movement of people across borders without internal border controls. This benefits citizens, businesses, and workers by facilitating labor mobility and contributing to a more integrated and dynamic European labour market.
Participation in EU programmes: EEA countries may choose to contribute financially and participate in various EU programmes and funds. This participation provides access to funding opportunities, research collaboration, and other initiatives that contribute to economic and social development.
Political dialogue and cooperation: While the EEA is primarily an economic arrangement, it also provides a platform for political dialogue and cooperation between the EU and EEA member states. This includes discussions on common challenges, foreign policy issues, and broader strategic considerations.
Flexibility for non-EU countries: The EEA offers a flexible arrangement for countries that prefer not to become full EU members but still want close economic ties. It allows non-EU countries to benefit from aspects of European integration without fully participating in the EU's political and institutional structures.
Stability and predictability: Membership in the EEA provides stability and predictability for businesses, as it establishes a framework for economic relations that is well-defined and based on established rules. This can contribute to a favourable business environment and encourage investment.
The specific details of the EEA's functions and purposes are outlined in the EEA Agreement, a treaty that governs the relationship between the EU and the EEA member states. The dynamics of the EEA may evolve over time based on political developments and negotiations between the parties involved.
You can learn more about this topic with our EU Law notes.
