What is European Economic Area (EEA)?

The European Economic Area (EEA), established in January 1994, is an area in Europe that acts as an extension of the European Union's (EU) financial market. The EEA is composed of the EU member states as well as three of the four nations that make up the European Free Trade Association (EFTA) — Norway, Iceland, and Liechtenstein, with Switzerland denying entry. The EEA was founded to create an open framework to implement laws across all participating countries relating to the movement of goods, services, capital, and citizens (known universally as the four freedoms).