EEA at 30
This report is in Norwegian only. During 30 years, Norway has participated in the EU internal market via the EEA (European Economic Area) agreement. According to available research, this has led to a strong increase in trade and a real income gain of about 2-6%. On top of this, there are other gains, for example administrative cost savings due to common rules in the EEA, and welfare gains due to common environmental standards in Europa. The EEA agreement is unique by having an extensive set of common rules that are continuously updated. Thousands of EEA rules are part of national laws and practice that people and firms meet every day without necessarily knowing that they are due to the EEA. The eastern enlargement from 2004 extended the EEA into an integrated and growing market with more than 500 million inhabitants and has led to economic and social convergence in Europe since the new members have trebled their incomes. Migrants from the new member Norway have high work participation rates and currently represent about ¼ of immigrants in Norway. The EU is still clearly Norway’s largest partner with about 60% for trade as well as investment. Within the EEA, trade with and between the new member states has grown fastest. For trade in goods, the EEA has led to a seamless common market for the sectors that are included. Also for services, the EEA has led to stronger integration but differences between national regulations still impede trade. Completion of the internal market for services is important for small and medium-sized enterprises, and important to create efficient value chains in Norway and Europe. During the EEA period, Norway had a sizeable terms-of-trade gain due to stronger price growth for exports than for imports. Trade within as well as beyond the EEA contributed to this. During recent years, the EU has modified the rulebook on state aid, partly motivated by the green transition and subsidies in China and the USA. This leads to a new industrial policy, with new forms of cooperation where EFTA may participate, however with some challenges. Digitalisation has created new global challenges where the EU plays a leading role as regulator, with impact also for the EEA. In particular, common regulations in telecommunication have led to considerable gains and contributed to competitive digital services. In the new trade policy climate, the borderline between what is inside and outside the EEA becomes more blurred. An example is climate policy, where Norway through the EEA participates in the EU emission quota trading system but it is not yet clear whether Norway should introduce EUs carbon tax on imports from third countries (CBAM). Cooperation with the EU increasingly affects trade policy viz. third countries, where EFTA traditionally had autonomy. The new geopolitics also create trade policy challenges not covered by the EEA, where the EU introduces new measures while EFTA does not have a clear response. In some areas, for example export restrictions and sanctions, Norway has an ever-closer cooperation with the EU.
From partners to allies: Finland and Norway in a new era
Finland’s decision to apply for NATO membership in 2022 altered Nordic security and defence dynamics. It also reset Finland’s relations with its neighbouring states – including longstanding NATO member Norway. In this policy brief, we discuss the evolving relationship between Finland and Norway. Despite their history as peaceful neighbours, divergent security arrangements generated political distance between Finland and Norway during the Cold War. After the end of the Cold War, their security policies gradually became more aligned, as evident also in heightened Nordic security cooperation, Finnish and Swedish participation in NATO exercises, and, more recently, the signing of a series of defence agreements with each other as well as with Sweden and the United States. Following Finland’s NATO accession, both states have anticipated a deepening of the Finnish-Norwegian alliance. We identify some areas where Finland and Norway may benefit from collaborating and exchanging perspectives in the coming years. This includes in the management of shared institutional frameworks, security concerns in the Arctic and Baltic Sea regions, the future relationship with the United States, and a more antagonistic Russia.
Jenny Lorentzen
Jenny Lorentzen is a Senior Research Fellow in the Research Group for Peace, Conflict and Development.Her main areas of expertise are the Women, P...
Leonard Seabrooke
Leonard Seabrooke is Professor of International Political Economy and Economic Sociology in the Department of Organization at the Copenhagen Busin...
Arctic Pressures (ArcPres)
Russia’s reinvasion of Ukraine in 2022 precipitated a challenging new chapter for Arctic political and security dynamics. Going forward, security and governance developments in the region will continu...
Panel debate, "War in Europe: Nordic Cooperation in a Changing Security Environment"
Paneldebate, annual conference held in collaboration with the Foreign Ministry, the Nordic House, the Institute for Public Administration and Politics at the University of Iceland and the Icelandic Political Scientist Association.
Med krig i nærområdene, hvor går Norden?
Krigen i Ukraina har endret Norden. Med Sverige og Finland på vei inn i NATO åpnes nye muligheter for tettere nordisk samarbeid. Samtidig har Nordisk råd begynt å diskutere hvorvidt det er behov for å revidere Helsingforsavtalen – også omtalt som «Nordens grunnlov», slik at avtalen også omfatter det nordiske samarbeidet om sikkerhet og beredskap. Hvilke følger får den nye sikkerhetspolitiske situasjonen for det nordiske samarbeidet? Hva gjør endringene med Nordens posisjon – i Europa og verden? Skal vi ha en nordisk forsvarskommisjon, slik blant andre tidligere statsminister Magdalena Andersson nylig tok til orde for?