Sunday

22nd May 2022

Norway could complicate UK's internal market access

  • The UK is not likely to start formal talks to leave the EU until 2017 (Photo: Davide D’Amico)

Norway could block Britain's post-EU exit access to the European single market.

On Tuesday (9 August), Norway’s European affairs minister, Elisabeth Vik Aspaker, said a UK attempt to rejoin the European Free Trade Association (EFTA) may not be in Norway's interest. EFTA states are not members of the EU.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

“It’s not certain that it would be a good idea to let a big country into this organisation. It would shift the balance, which is not necessarily in Norway’s interests," she told Norwegian newspaper Aftenposten.

Norway gained access to the EU's internal market via its membership with the European Economic Area (EEA). The EEA includes all EU member states along with Norway, Iceland and Liechtenstein and includes the free movement of people, something the UK is likely to oppose.

It is not yet clear if the UK - which was a member till 1973 - wants to rejoin EFTA, which also includes Switzerland. The UK can join EFTA without becoming an EEA member.

But any renewed UK membership bid would require a unanimous vote among existing EFTA members, said Aspake.

The Guardian newspaper reports David Davis, UK's so-called Brexit minister, will hold talks on the issue with senior Norwegian officials in the next few weeks.

Economic uncertainty

The move comes after a new report by the London-based Institute for Fiscal Studies (IFS), which suggest Britain stands to lose billions from its withdrawal from the free trade bloc.

Any UK failure to negotiate a new trade deal following an EU exit will seriously hit Britain's GDP, Wednesday's (10 August) IFS report suggests.

It notes the UK needs to seal a new trade deal or risk facing an equivalent 4 percent loss of economic output. Although, the report notes new trade deals are "unlikely to compensate fully for EU trade".

IFS researcher Ian Mitchell in a statement said that the UK faces big economic choices in terms of future EU relations.

He also pointed out the large differences between having "access to" and a "membership of" the single market.

"Membership is likely to offer significant economic benefits particularly for trade in services. But outside the EU, single market membership also comes at the cost of accepting future regulations designed in the EU without UK input," he said.

Formal exit talks out, Russia in

Meanwhile, UK prime minister Theresa May says her government won't launch any formal exit talks before the end of the year.

She reiterated her position in separate telephone calls to Dutch prime minister Mark Rutte on Monday (7 August).

She has also spoken to Russia's president Vladimir Putin.

Both leaders pledged to smooth strained ties, despite western sanctions on Russia, Russia's support of the Syrian regime, and its invasion of Crimea.

"The prime minister and president agreed that British and Russian citizens faced common threats from terrorism, and that co-operation on aviation security in particular was a vital part of the international counter-terrorism effort," said a UK government spokesperson.

EU states warn of looming food-price crisis

Prices of cereals, fertilisers, and oilseed have shot up drastically in several European markets due to Russia's war on Ukraine, prompting some member states to seek EU aid.

EU plans to jointly invest in defence capabilities

EU countries need to refill stockpiles after several member states supplied weapons to Ukraine in its fight with Russia, and to phase out existing Soviet-era weapons systems, and reinforce air defence.

UK and EU edge closer to trade war over Northern Ireland

The EU warning comes after the UK government escalated the conflict over the Northern Ireland protocol — a set of post-Brexit trade rules — by saying it will unilaterally pass a law to change the EU-UK trade treaty.

Podcast

Ultraconservatives in Putin's shadow

Vladimir Putin's Ukraine war has threatened to be a public relations disaster for hard-right gatherings like the Conservative Political Action Conference — now meeting in Budapest and featuring Hungarian prime minister Viktor Orbán, who remains highly-cordial with the Kremlin.

Opinion

Will 'Putin's Nato' follow Warsaw Pact into obscurity?

Valdimir Putin's equivalent to Nato — the Collective Security Treaty Organization of Russia, Kazakhstan, Kyrgyz Republic, Armenia, Tajikistan, and Belarus — is convening in Moscow next week to give cover that Russia is not alone in its war against Ukraine.

News in Brief

  1. UK to send 'hundreds' of migrants to Rwanda each year
  2. Norwegian knife attacks were domestic dispute
  3. Sweden hits back at Turkey's 'disinformation' in Nato bid
  4. Germany's Schröder gives up one of two Russia jobs
  5. G7 countries pledge €18bn in financial aid for Ukraine
  6. Italian unions strike in protest over military aid for Ukraine
  7. Russia cuts gas supply to Finland
  8. Half of Gazprom's clients have opened rouble accounts

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic delegation visits Nordic Bridges in Canada
  2. Nordic Council of MinistersClear to proceed - green shipping corridors in the Nordic Region
  3. Nordic Council of MinistersNordic ministers agree on international climate commitments
  4. UNESDA - SOFT DRINKS EUROPEEfficient waste collection schemes, closed-loop recycling and access to recycled content are crucial to transition to a circular economy in Europe
  5. UiPathNo digital future for the EU without Intelligent Automation? Online briefing Link

Latest News

  1. What Europe still needs to do to save its bees
  2. Remembering Falcone: How Italy almost became a narco-state
  3. Economic worries and Hungary on the spot Next WEEK
  4. MEPs urge sanctioning the likes of ex-chancellor Schröder
  5. MEPs call for a more forceful EU response to Kremlin gas cut
  6. Catalan leader slams Pegasus use: 'Perhaps I'm still spied on'
  7. More EU teams needed to prosecute Ukraine war crimes
  8. French EU presidency struggling on asylum reforms

Join EUobserver

Support quality EU news

Join us