When planning travel, entering the international market with your business or moving to a new place of residence, you must clearly distinguish between the concepts of "European Union" and "Schengen", "European Economic Area" and "European Free Trade Association". This is important because we are talking about freedom of movement between countries, as well as the operation of special customs and trade rules.
European Union (Europese Unie)
Represents an economic and political association 27 European states. The beginning of the EU was marked by the signing of the Maastricht Treaty, which entered into force on November 1, 1993. The association is constantly expanding - today 7 states have the status of candidates for the EU. In the European Union, thanks to the standardization of legislation, a common market has been created.
Schengen area (Schengenlanden)
Territory formed in 1985 by the Schengen Agreement between Germany, Belgium, the Netherlands, Luxembourg and France. Over the years it has expanded and now covers 26 countries. On January 1, 2023, Croatia will join the Schengen area. There are no travel restrictions or border controls within the Schengen area. Such control operates only at the external border - at the entrance and exit.
Important! The Schengen and EU borders do not coincide. The Schengen area includes 22 countries out of 27 EU member states plus 4 EFTA countries.
European Economic Area (EEA)
The European Economic Area was created by an international agreement providing for the free movement of goods, capital, services and people (the "four freedoms") in 1994. Now it includes 27 member states of the European Union + Norway, Iceland and Liechtenstein = total 30 states.
European Free Trade Association (EFTA)
It is a trade association in which cooperation between countries is less close (in comparison with the European Union). In particular, no political and customs union is envisaged. This association was formed in 1960, now it includes 4 states: Iceland, Liechtenstein, Norway and Switzerland. At the same time, Norway, Liechtenstein and Iceland signed an agreement with the EU on a free trade area, while Switzerland did not.
ETIAS - European Entry Authorization System
The abbreviation ETIAS stands for European Travel Information and Authorization System. This is an electronic system that will track travelers from countries that do not need a visa to enter the Schengen area. Currently, 62 countries are not part of the EU, but have a visa-free regime. The ETIAS program will operate from 2023.
Eurozone
This refers to the euro area, the geographic and economic region made up of the countries of the European Union that use the euro as their national currency. The Eurozone is made up of 19 countries European Union. The other EU states (except Denmark) are bound to join over time, as they have agreed to do so. Croatia will become the 20th member of the eurozone from January 1, 2023.
| European Union | Austria, Belgium, Bulgaria, Hungary, Germany, Greece, Denmark, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Finland, France, Croatia, Czech Republic , Sweden, Estonia |
| Schengen Area | Austria, Belgium, Hungary, Germany, Greece, Denmark, Iceland, Spain, Italy, Latvia, Lithuania, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Finland, France, Czech Republic, Switzerland, Sweden , Estonia |
| EEA | Austria, Belgium, Bulgaria, Hungary, Germany, Greece, Denmark, Ireland, Iceland, Spain, Italy, Cyprus, Latvia, Lithuania, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Finland, France, Croatia, Czech Republic, Sweden, Estonia |
| EFTA | Iceland, Liechtenstein, Norway, Switzerland |
| Eurozone | Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Finland, France, Estonia |
Interesting Facts:
- Iceland, Liechtenstein and Norway are member states of the EEA but not members of the European Union.
- Switzerland is not a member of the EU or the EEA. However, Swiss citizens have rights similar to those of citizens of EEA countries.
- Andorra, Monaco, San Marino and the Vatican have formal agreements with the EU to use the euro as official currency and issue their own money. Kosovo and Montenegro adopted the euro unilaterally, but officially these countries are not part of the eurozone.
- The Azores, Madeira and the Canary Islands are special members of the EU and part of the Schengen area, despite being located outside the European continent.
