Balancing Integration and Autonomy. How EFTA countries reconcile EU-approximation and independence

Studie 27-02-2020

In 2020, the European Free Trade Association (EFTA) celebrates its 60th anniversary. During this respectable lifetime, its composition has frequently changed, starting with seven founding members in 1960 and having four today. EFTA has turned out to be an ‘antechamber’ for the EU, as well as a distinct organisation with its own purpose. Since the foundation of the European Economic Area (EEA) in 1992, EFTA states Norway, Iceland and Liechtenstein have joined this area, whereas Switzerland has chosen a relationship with the EU based on a number of bilateral agreements. These four EFTA states have in common that they perform a delicate and dynamic balancing act between integration into the EU and preservation of their own autonomy. Reasons for the strong desire for autonomy can partly be found in geographic or historic factors, but these cannot explain their position entirely, as existing EU Member States may also have such particularities. That all EFTA countries have a strong economy based on specific sets of natural resources and/or financial legislation, certainly is another element that explains the desire to keep matters in their own hands as far as possible. Strong consensus oriented democratic systems with components of direct democracy complete the picture. External events, such as the creation of the Internal Market, EU enlargement or the 2008 financial crisis have regularly challenged the balance EFTA countries have built with the EU. Even though they have led to initiatives to integrate closer with the EU or apply for membership, in the end such steps have not been completed. Whereas the UK is an important partner of all EFTA countries, mostly of Norway, its withdrawal from the EU has created another challenge to the balance. In a larger perspective, balancing autonomy and integration is not unique to EFTA countries, but happens also within the EU in the form of opt outs or arrangements for enhanced cooperation. And in view of a large number of countries aspiring for future EU membership, concepts such as flexible arrangements or associate memberships are not likely to disappear from the EU agenda.