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The EFTA Surveillance Authority (ESA) monitors compliance with the Agreement on the
European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade As ...
(EEA) in
Iceland Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its ...
,
Liechtenstein Liechtenstein (), officially the Principality of Liechtenstein (german: link=no, Fürstentum Liechtenstein), is a German language, German-speaking microstate located in the Alps between Austria and Switzerland. Liechtenstein is a semi-constit ...
and
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of ...
; the
European Free Trade Association The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European states: Iceland, Liechtenstein, Norway and Switzerland. The organization operates in parallel with the European U ...
(EFTA) States which are a part of the EEA Agreement, allowing them to participate in the Internal Market of the European Union. ESA operates independently of the EEA EFTA States and seeks to protect the rights of individuals and market participants who find their rights infringed by rules or practices of the EFTA States or companies within those states. ESA monitors the timely implementation of EEA law (such as directives and
regulations Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. Fo ...
) by the EEA EFTA States and may investigate whether national legislation or practices are in line with EEA law. Such an investigation may lead to the launching of formal infringement proceedings against an EFTA State, a three-step procedure which may result in ESA referring the case to the EFTA Court. ESA is based in
Brussels Brussels (french: Bruxelles or ; nl, Brussel ), officially the Brussels-Capital Region (All text and all but one graphic show the English name as Brussels-Capital Region.) (french: link=no, Région de Bruxelles-Capitale; nl, link=no, Bruss ...
(
Belgium Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to ...
) with over 70 employees of 18 different nationalities, and its working language is
English English usually refers to: * English language * English people English may also refer to: Peoples, culture, and language * ''English'', an adjective for something of, from, or related to England ** English national ...
. Enterprises and individuals can, however, address ESA in any official EFTA language.


Establishment

The original plan for the European Economic Area did not include the EFTA Surveillance Authority, and instead had the European Commission exercising this role. However, during the negotiations for the EEA agreement, the
European Court of Justice The European Court of Justice (ECJ, french: Cour de Justice européenne), formally just the Court of Justice, is the supreme court of the European Union in matters of European Union law. As a part of the Court of Justice of the European U ...
informed the
Council of the European Union The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and informally known as the Council of Ministers, is the third of the seven Institutions of the European Union (EU) as ...
by way of letter that they considered that giving the EU institutions powers with respect to non-EU member states would be a violation of the
treaties of the European Union The Treaties of the European Union are a set of international treaties between the European Union (EU) member states which sets out the EU's constitutional basis. They establish the various EU institutions together with their remit, procedures ...
, and therefore the current arrangement was developed instead.


Functions

ESA ensures that the participating EFTA States - Iceland, Liechtenstein and Norway - respect their obligations under the EEA Agreement and takes on many of the roles performed by the European Commission within the EU, though only for the three EEA EFTA States and on a smaller scale. It also differs in that it does not propose new law or policy as the Commission does. The primary task of ESA is ensuring that relevant
EU law European Union law is a system of rules operating within the member states of the European Union (EU). Since the founding of the European Coal and Steel Community following World War II, the EU has developed the aim to "promote peace, its val ...
is properly transposed and enforced by the EEA EFTA states. If a state fails to do so, ESA may resort to bringing the state to the EFTA Court. Secondly, ESA ensures free competition, with the power to inspect and fine companies engaging in cartels or abusing their market position. This also extends to overseeing state aid to undertakings. There are then further administrative tasks related to the approval of EFTA states decisions relating to areas such as banning harmful products or the recognition of driving licences. It also provides information and advice on interpreting and implementing the EEA agreement. ESA seeks to protect the rights of individuals and market participants who find their rights infringed by rules or practices of the EFTA States or companies within those states. Such rules or practices may, for example, be discriminatory, impose unnecessary burdens on commercial activity, or constitute unlawful state aid. ESA may in such cases initiate proceedings against the EFTA State at the EFTA Court, seeking a change in the relevant rules or practices. ESA also enforces restrictions on state aid, assessing its compatibility with the functioning of the internal market, and has the power to order repayment of unlawful state aid. ESA also ensures that companies operating in the EFTA countries abide by the rules relating to competition. ESA can investigate possible infringements of EEA provisions, either on its own initiative, or on the basis of complaints, and can impose fines on individual undertakings and assess mergers between undertakings where certain thresholds are met. In monitoring and enforcing the Agreement, ESA has powers that correspond to those of the European Commission. There is close contact and co-operation between the Commission and ESA. The two institutions oversee the application of the same laws in different parts of the EEA. ESA has been allocated with specific tasks in supervising financial services. ESA has the powers to adopt certain defined decisions that are legally binding on national supervisory authorities and market operators (including credit institutions, insurance companies and investment firms) established in the EFTA States. To ensure consistency within the entire EEA such binding decisions will be adopted on the basis of drafts from the EU
European Supervisory Authorities The European System of Financial Supervision (ESFS) is the framework for financial supervision in the European Union that has been in operation since 2011. The system consists of the ''European Supervisory Authorities'' (ESAs), the European Syste ...
(EBA, EIOPA and ESMA), either on the initiative of ESA or on the initiative of the relevant EU authority.


Relations with the Commission

The institutional framework of the EEA Agreement consists of two pillars and is thus often referred to as the “two-pillar structure”. The EU and its institutions constitute one pillar, while the EEA EFTA States and their institutions constitute the other pillar, mirroring those of the EU. Between these two pillars, several joint bodies have been established. Through these joint bodies, the 31 EEA States jointly implement and develop the EEA Agreement. The two-pillar structure is necessary because the EEA EFTA States have not transferred any competences regarding surveillance and judicial review to the EU. In addition, the EEA EFTA States are also, as a main rule, constitutionally unable to accept binding decisions made by the EU institutions – especially the European Commission and the European courts – directly. In order to apply to the EEA EFTA States, certain competences and tasks, which are carried out by bodies in the EU pillar, have to be conferred upon bodies in the EFTA pillar. That is why, pursuant to Article 108 EEA, the EEA EFTA States established the EFTA Surveillance Authority and the EFTA Court. The EFTA Surveillance Authority has been granted competences mirroring those of the Commission as regards surveillance, whilst the EFTA Court has been granted competences mirroring those of the Court of Justice of the European Union (CJEU). Due to their mirror roles and the need to ensure uniform application of law, ESA cooperates closely with the European Commission. The two bodies consult each other and exchange data; in matters of state aid and competition there is a particularly deep level of cooperation. In the event of a disagreement, negotiations are referred to an EEA Joint Committee. The EFTSA undertakes supervisory approvals in regard to major restructurings such as those resulting from the 2008–2012 Icelandic financial crisis, such as the refinancing of Iceland's Housing Financing Fund.


Organisation

ESA is led by a college of three members, one from each country.College
/ref> All decisions which formally bind ESA are taken by the College. Although College members are appointed by the Member States, they undertake their functions independently and free of political direction. All decisions which formally bind ESA are taken by the College, which usually meets once a week. ; The College currently consists of: * Arne Røksund ,
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of ...
, President *Stefan Barriga,
Liechtenstein Liechtenstein (), officially the Principality of Liechtenstein (german: link=no, Fürstentum Liechtenstein), is a German language, German-speaking microstate located in the Alps between Austria and Switzerland. Liechtenstein is a semi-constit ...
*
Árni Páll Árnason Árni Páll Árnason (born 23 May 1966) is a member of thCollegeof the EFTA Surveillance Authority, responsible for Free movement of goods, Competition, Public undertakings and Monopolies, Energy, Environment, Transport, Public procurement. H ...
,
Iceland Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its ...
The College is served by four departments that form the staff of ESA: the Internal Market Affairs Directorate; the Competition and State Aid Directorate; the Legal and Executive Affairs Department; and the Administration.


See also

* High Authority of the ECSC *
European Free Trade Association The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European states: Iceland, Liechtenstein, Norway and Switzerland. The organization operates in parallel with the European U ...
* EFTA Court *
European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade As ...
*
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are located primarily in Europe, Europe. The union has a total area of ...
*
Free trade areas in Europe At present, there are four multi-lateral free trade areas in Europe, and one former free trade area in recent history. Note that there are also a number of bilateral free trade agreements between states and between trade blocks; and that some ...


References


External links


The EFTA Surveillance Authority's website
{{European Free Trade Association (EFTA) Surveillance Authority fr:Association européenne de libre-échange#Autorité de surveillance