EU advocates for deeper cooperation with EEA countries Iceland, Norway, and Liechtenstein on internal market regulations

The European Union is advocating for increased cooperation with the EEA countries—Iceland, Norway, and Liechtenstein—on regulations and directives. Enrico Letta, author of a recent report on the internal market, highlighted this necessity aimed at deeper integration without proposing changes to the EEA Agreement.

Letta’s report, titled “Much more than a market,” garnered attention earlier this year, especially for suggesting an expansion of the “four freedoms” (the free movement of people, capital, goods, and services) to include a fifth aspect focused on enhancing connections within the internal market related to research, innovation, and education. In an interview, Letta pointed out that while the internal market is well understood in economic terms, particularly from the 20th-century perspective, there has been a lag in innovation and research. He expressed confidence that Iceland could play a significant role in enhancing European university collaboration.

The report commemorates thirty years since the establishment of the internal market and the ratification of the EEA Agreement, which ensures EEA countries access to it. Letta engaged with stakeholders, emphasizing the need for increased participation of EEA nations, especially in the early stages of regulatory development, as these countries adopt EU regulations.

Letta acknowledges resistance to integrating financial markets but believes heightened awareness of the inadequacy of the current fragmented system is growing. He argues that a strong financial market is essential for sustainable development and the green transition. A significant theme in Letta’s report is the expansion of the EU, stressing the need to manage any impacts this has on EEA members while maintaining the strength of the EEA.