The EEA Agreement guarantees the freedom to provide services on a non-discriminatory basis anywhere in the European Economic Area. As there are to be no restrictions on the freedom to provide services within the EEA, no requirements of nationality may hinder an undertaking or an individual established in an EEA State providing services to a customer in another country within the EEA.
The free movement of services - together with the right of establishment - is one of the major breakthroughs and an important factor in EEA coherence. The service sector constitutes a significant share of local economies with many countries employing well over half of their working population in services. Services also play a significant role at many stages of the production of goods, strengthening their links with trade in goods and services. The main fields of services covered by the EEA Agreement are:
Sub-Policy Areas
Single Market Policies and Tools
The Working Group on Enterprise Policy and Internal market Affairs has the responsibility for following horizontal strategies, policies and legislative proposals related to the Single Market and which do not belong to a sector specific EEA EFTA Working Group.
This includes the Services Directive (as regards services see Part III, Chapter 3 of the EEA Agreement) and related European Commission legislative proposals, and furthermore SOLVIT which is a Single Market problem solving mechanism for citizens and businesses in the EEA, and the Internal Market Information System (IMI) through which public authorities may communicate cross border.
The Single Digital Gateway Regulation also falls under the responsibility of the Workings as well has handling the EEA EFTA States’ financial contribution to the European Commission’s Internal Market budget lines for DG GROW, see Protocol 31 to the EEA Agreement.
For an overview of legal acts included in the EEA Agreement in the policy fields referred to above, see Annex X to the Agreement. The EEA EFTA States have issued several EEA EFTA Comments related to inter alia services. For EEA legislation for financial, telecommunication and transport, services, see these Policy Areas.
The Working Group on Enterprise Policy and Internal market Affairs is also following the development of new relevant legislation and polices related inter alia to the European Commission’s Green Deal, New Industrial Strategy, SME Strategy, Long term action plan for better implementation and enforcement of Single Market rules, and the Communication on Identifying and addressing barriers to the Single Market. In particular, the proposals for a Single Market Emergency Instrument and a European Chips Act.
The EEA EFTA States participates inter alia in the Commission Expert Group on the Services Directive and the Expert Group on SOLVIT.
See also: DG Grow
Electronic Communication, Audiovisual Services and Information Society (ECASIS)
The Working Group on Electronic Communication, Audiovisual Services and Information Society (ECASIS) is responsible for legislation pertaining to the digital single market and making Europe fit for the digital age. These areas are covered by Article 36 of the EEA Agreement and relevant EU law is incorporated into Annex XI and Protocol 31 of the EEA Agreement.
Electronic Communication covers all forms of electronic transmission of information, including telecommunications, broadcasting and the internet. Through the EEA Agreement, the EEA EFTA States are part of the EU’s internal market in the field of Electronic Communication. One of the core pieces of legislation is the EU regulatory framework for telecommunications, which establishes equal conditions for competition in the EEA telecoms market. Other EU rules, for example on radio spectrum management, roaming, privacy protection in electronic networks and net-neutrality, also apply throughout the EEA. The main objectives of these rules are to offer consumers a greater choice of services, increase levels of connectivity and guarantee basic user rights and protection.
The Audiovisual Media Services Directive is the legal framework establishing the legal regulatory and administrative conditions related to the provision and distribution of Audiovisual Media Services in the EEA. These rules also aim to support European works, protect children and consumers, including on video-on-demand services, safeguard media pluralism and combat incitement to violence or hatred.
Information Society covers rules regarding the free movement of information society services and applies to a wide range of economic activities that take place online. It includes rules on e-commerce, cross-border data flows, the re-use of public sector information and cyber security, as well as a framework for electronic identification and signatures. The EEA EFTA States participate in a number of EU expert groups working to implement digital single market policies.
The Working Group on Electronic Communication, Audiovisual Services and Information Society (ECASIS) covers these three interlinked areas, and also follows up on horizontal initiatives related to the European strategies for data and Artificial Intelligence. The Working Group meets three times a year in Brussels.
Data Protection
The Expert Group on Data Protection actively follows EU initiatives to protect citizens’ right to data protection in a fast-changing digital environment. This area is covered by Annex XI of the EEA Agreement on Electronic Communication, Audiovisual Services and Information Society.
The protection of natural persons in relation to the processing of their personal data is a fundamental right enshrined notably in the European Convention on Human Rights and related international instruments, such as the Council of Europe’s Convention No 108. In its essence, this right guarantees that personal data should only – and always – be processed lawfully, fairly and in a transparent manner; be collected for specified purposes; be limited to what is necessary; be accurate; be stored for no longer than necessary; and be kept securely and confidentially.
At the same time, the digitalisation and integration of European societies are increasing both the demand for personal data processing and the volume of cross-border data flows within the EEA and beyond. Societal challenges, e.g. in the areas of public health, and new technology such as Artificial Intelligence, will also influence developments in the area of data protection. In this context, the regulation of personal data protection at EEA level contributes to the achievement of a genuine internal market, whilst ensuring that the fundamental rights of individuals are safeguarded. Personal data protection has been regulated at Union level since 1995 and in the EEA since 1999, allowing for the free flow of personal data within the area.
In the field of data protection, the EEA Agreement covers EU legislation of general application to commercial activities, such as the General Data Protection Regulation (EU) 2016/679 and all related “adequacy decisions” allowing international transfers of personal data with counterparties located outside the EEA, as well as the e-Privacy Directive 2002/58/EC and related acts such as Regulation (EU) No 611/2013 on notifications of data breaches. As a result, individuals in the EEA EFTA States - Iceland, Liechtenstein and Norway - and in the Union benefit from the same level of protection. Controllers or processors of personal data established in an EEA EFTA State are subject to the obligations laid down in EU legislation, and their compliance is monitored by the independent data protection authority of each EEA EFTA State.
EU legislation regarding the processing of personal data for law enforcement purposes is not covered by the EEA Agreement, but may be applicable to some or all of the EEA EFTA States by virtue of other agreements with the Union.
The Expert Group on Data Protection contributes to the development of Union policies and legislation in the field of data protection by providing expert advice to the European Commission on its proposals, or by participating in its committees, in accordance with the EEA Agreement. The Expert Group is composed of representatives of the EEA EFTA States and meets three to four times a year.
In addition, the national data protection authorities of Iceland (Persónuvernd), Liechtenstein (Datenschutzstelle) and Norway (Datatilsynet) participate in the relevant EU cooperation forums for independent authorities, such as the European Data Protection Board.
Financial Services
The Working Group on Financial Services is responsible for the legislation contained in Annex IX of the EEA Agreement.
The EEA EFTA States are full participants in the Internal Market for Financial Services, including the European System of Financial Supervision, where decisions made by the European Supervisory Authorities in the EU are made by the EFTA Surveillance Authority as regards the EEA EFTA States.
The Working Group on Financial Services ensures that all EEA relevant EU legislation in the field of financial services is incorporated into the EEA Agreement. This includes inter alia the CRR/CRD regimes in the banking sector, the Solvency II regime in the insurance sector, the MiFID/MiFIR regimes in the securities sector, and IORP in the pensions sector. The Working Group closely monitors the preparatory work of the European Commission on new legislative initiatives within the field and participates in shaping EU policies and legislation.
See also: Single Market - Financial Services
Postal Services
The Working Group on Postal Services is responsible for the legislation on postal services contained in Annex XI of the EEA Agreement.
The key legislation in this field is the Directive on Postal Services 97/67/EC which established a regulatory framework for European postal services. This Directive has been amended by Directive 2002/39/EC and Directive 2008/6/EC.
The overall objective of European postal policy is to ensure that efficient, reliable and high-quality postal services are available on at least five working days per week throughout the EU to all its citizens and businesses at affordable prices. The Postal Services Directive is a framework directive which gives a considerable degree of flexibility to the Member States, allowing them to adapt elements of domestic postal services to their own particular needs.
The third Postal Services Directive 2008/6/EC introduced the legal basis for the accomplishment of the internal market for postal services by providing for a last legislative step in the process of gradual market opening.
The EU has also taken steps to improve price transparency for cross-border parcel delivery services.The aim of these measures is to allow consumers and companies to buy and sell products and services online more easily and confidently, and to increase the uptake of e-commerce in the European Economic Area.
See more:
Transport
The Working Group on Transport is responsible for the legislation contained in Annex XIII and Protocols 19-20 of the EEA Agreement.
Transport plays an important role in people’s everyday lives and is a key element in ensuring the free movement of goods and persons within the EEA Internal Market as well as trade with third countries. Annex XIII of the EEA Agreement covers all modes of transport, including road, rail, aviation, maritime, inland waterway transport and horizontal transport issues.
Liberalisation
Transport markets within the EEA are being harmonised and opened up for competition, through non-discriminatory rules.
Liberalisation efforts have progressed at a varying pace in the different transport sectors, butone common denominator has beenthe desire to introduce greater competition in the provision of these essential services. One of the first sectors to see a significant change was air transport where, as a result of three successive packages in the 1990s, all EU and EEA airlines were granted equal rights of access to the EEA market. The EEA Agreement further ensures that road transport operators in an EEA Member State may transport goods freely to and from an EEA Member State.
Much work has been done to open up Europe’s rail transport market. Four successive legislative packages were adopted between 2001 and 2016 with the aim of gradually opening up rail transport service markets for competition, first in freight then in passenger transport.
The maritime transport market has traditionally been a liberalised market. However, inside the European Union, the cabotage market was only opened up to competition in 1993. Legislation on cabotage gives EEA nationals the right to carry passengers or goods by sea between any ports of an EEA State.
Safety
As traffic levels continue to grow in Europe, improving safety is a priority in all modes of transport. The EEA Agreement contains extensive safety legislation for all modes oftransport, ensuring a harmonised high level of safety throughout the EEA.
The European Maritime Safety Agency was established at the end of 2002. Its main tasks are to facilitate enhanced safety and to reduce accidents, marine pollution and loss of life at sea. The European Aviation Safety Agency was created in 2002 to help ensure a high level of safety and environmental protection in civil aviation. AEuropean Railway Agency was created in 2004 to contribute to the creation of a European railway area without frontiers and the guarantee ofa high level of safety.
The EEA EFTA Member States are members of all of these agencies.
Passenger Rights
Strengthening passenger rights is a high priority for the EU and the EEA EFTA States.
Passengers, especially those travelling by air, are often victims of overbooking, lengthy delays and sudden cancellations. A compensation scheme for air passengers is already in place, as well as legislation ensuring the rights of passengers with reduced mobility.
Similar schemes have been adopted for passengers when travelling by sea and inland waterway and for passengers in bus and coach transport.
Security
Security has become an increasingly common concern at both European and global level, demanding a range of actions and solutions.
The prevention and avoidance of terrorist attacks against passengers and transport at EEA level has resulted in strict security legislation for aeroplanes and airports as well as ships and ports. In order to ensure the development of the necessary technical implementation tools, experts representing all EEA States participate in sectorial Commission Security Committees.
