Since 1 May 1995, Liechtenstein has been linked to the European Union (EU) and its member States through a comprehensive association agreement – the Agreement on the European Economic Area (EEA). The relations between Liechtenstein and the EU are close and the cooperation intensive.

Development of relations with the EU
In the first decades after the founding of the European Economic Community (EEC), the relations of Liechtenstein with the future European Union were primarily maintained by Switzerland, on the basis of the strong bilateral economic treaty links (Customs Union, Currency Union, etc.). In 1972, Liechtenstein entered into the first direct treaty relationship with the Communities. In a three-page agreement between Liechtenstein, the EEC, and Switzerland, the applicability of the free trade agreement between the EEC and Switzerland was specified for Liechtenstein. As the European Free Trade Association (EFTA) moved closer to the European Communities, Liechtenstein was included in the development of the European internal market, after becoming part of EFTA through a special protocol in 1960. Liechtenstein became a member of EFTA in 1991.

Cooperation within the EEA
The idea of creating a European Economic Area goes back to a joint ministerial meeting of EFTA and the EEC that took place in Luxembourg in 1984. A declaration was adopted at this meeting that mentioned the establishment of a European Economic Area.
In 1989, Jacques Delors, then President of the European Commission, proposed a new form of partnership which later took shape as the Agreement on the European Economic Area (EEA Agreement). The EFTA States, which then included Austria, Finland, Iceland, Liechtenstein, Norway, Sweden, and Switzerland, responded enthusiastically to this idea. In June 1990, formal negotiations began. The EEA Agreement was signed in Porto (Portugal) on 2 May 1992 and entered into force on 1 January 1994.
Liechtenstein’s desire to take part in this extensive integration solution was underscored by two positive popular votes: As a precondition to ratification, 56% of Liechtenstein citizens voted for EEA membership on 13 December 1992. After Switzerland rejected membership in a popular vote on 6 December 1992, various treaty amendments were necessary to allow Liechtenstein membership in the EEA while simultaneously maintaining the Customs Union with Switzerland. The second popular vote on EEA membership on 9 April 1995 again resulted in a majority of 56% for closer ties with Europe on the basis of the EEA.
Since 1 January 1995, Austria, Finland, and Sweden have participated in the EEA as Member States of the EU. Liechtenstein became a full member of the EEA on 1 May 1995. The ten new Member States of the EU – Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia – have also been members of the EEA since 1 May 2004.
The EEA Agreement is the most extensive association agreement of the European Communities with third States and the most important bilateral legal basis for shaping Liechtenstein’s relations with the EU.

Further information on the EEA .

Recent developments inside and outside the EEA
Since the conclusion of the EEA Agreement in 1992, the European Union has continued to develop dynamically, and the question also arises for Liechtenstein how relations within and outside the Agreement should progress. The consequences of the establishment of the Economic and Monetary Union, the extension of cooperation in the areas of justice and internal security (including the Schengen Agreement), as well as the planned European Constitution are of particular importance in this regard.

Schengen/Dublin
In this context, it is particularly important for Liechtenstein that its EFTA partners, especially Switzerland, are further expanding their treaty relationships with the EU. Switzerland, for instance, whose borders with Liechtenstein do not have customs controls, has entered into negotiations on association with the Schengen and Dublin Agreements. The Schengen Agreement and the so-called Schengen acquis govern in particular the opening of borders within the common area, a strengthening of identity checks on the external borders, common asylum and visa policies, strengthened police cooperation, and facilitation of mutual legal assistance. Liechtenstein expects to begin negotiations with the EU soon on a parallel association with Schengen/Dublin.

Savings tax
The further integration proceeds, the more the EU shows interest in concluding regulations with third States. In 1999, the EU approached Liechtenstein with the wish to adopt a common regulation on taxing the interest income of EU citizens. The Liechtenstein Government has declared its willingness to cooperate so that Liechtenstein does not profit as a third State from any evasion maneuvers resulting from these new EU tax provisions. The Agreement between Liechtenstein and the EU entered into force on 1 July 2005.

EU and EEA enlargement
The enlargement of the EU and the EEA by ten countries on 1 May 2004 and the existence of further potential candidates entail that Liechtenstein, as a country with an international political and economic orientation, will even further increase the importance it attaches to integration. It is planned that the new EU countries will simultaneously join the EEA on 1 May 2004.

Mission of Liechtenstein in Brussels
In order to strengthen its relations with the European Union, Liechtenstein established a Mission in Brussels in 1994.

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