According to the German Chamber of Commerce and Industry (DIHK), the EU should actively expand the European Economic Area (EEA), deepen existing partnerships, and simultaneously make the single market more competitive through reforms – in the interest of the millions of companies engaged in cross-border trade and investment daily.

Background

The geopolitical upheavals of recent years – from the Ukraine war to the economic decoupling of the USA from China and growing trade conflicts – have hit Germany and the EU as open economies particularly hard. The EU is responding with a strategy for economic security that relies on global partnerships and reducing strategic dependencies. A core element of this strategy is closer institutional ties between neighbouring countries and the EU single market.

The EEA, which has included Norway, Iceland, and Liechtenstein since 1994, offers the closest existing integration format outside full EU membership. Furthermore, the focus is on the United Kingdom, Switzerland, accession candidates in the Western Balkans and Eastern Europe, Mediterranean neighbours, and Arctic territories like Greenland.  

DIHK impulses by regions

EU single market

• Disproportionate obstacles and barriers in the area of free movement of goods, services, and capital, as well as in connection with the freedom of establishment for companies operating across borders, still need to be eliminated.
• An executive market design, price controls, uniform prices and associated regulatory control are diametrically opposed to a growth-oriented and innovation-friendly environment for businesses in the single market.

European Economic Area (EEA)

• The close EEA relations with Norway, Iceland, and Liechtenstein should be further strengthened, particularly in the areas of energy, research, security, and defence.
• The EEA should be developed as an integration offer for neighbouring states for which EU membership is currently not an option.

United Kingdom
 

• The EU and the United Kingdom should deepen their institutional relations; the DIHK supports British efforts towards a customs union or EEA membership.
• Ongoing negotiations on the electricity single market, emissions trading, and health protection should be concluded expeditiously.
• The EU-UK summit 2026 should be used to achieve progress in legal harmonisation, business travel and professional recognition.

Switzerland
 

• It is important to ratify the EU-Switzerland agreement package of March 2026 rapidly.
• The EU-Switzerland trade agreement of 1972 should be modernised and extended to include services.
• The DIHK supports abolishing the lead time in employee secondment and concluding an economic security agreement.

Turkey
 

• The EU-Turkey customs union (since 1996) should be modernised and supplemented with a binding dispute settlement mechanism.
• Turkey should join the WTO alternative mechanism MPIA (Multi-Party Interim Appeal Arbitration Arrangement); its role as a trading partner and competitive location should be considered in the Industrial Accelerator Act.

EU accession candidates
 

• Quality should take precedence over speed; the economy should be closely involved in accession negotiations.
• The growth plan for the Western Balkans should be promoted; Serbia, Bosnia-Herzegovina, and Kosovo should be supported in their WTO accession.
• Within the EU, comprehensive institutional reforms are needed before further enlargement steps.

Southern Neighbourhood and Arctic
 

• A modernisation of the EU agreements with Morocco, Tunisia, and Algeria is required; the WTO accession of Algeria and Andorra deserves support.
• Trade relations with Greenland and the Faroe Islands should be expanded in the raw materials and energy sector; the EU should join the Arctic Council.

FAQ

What is the European Economic Area, and why is it relevant for German companies? The EEA has brought together EU member states with Norway, Iceland, and Liechtenstein since 1994 into a common market with free movement of goods, people, capital, and services. It provides German companies access to these markets under similar conditions as in the EU single market – without tariffs and with simplified rules for cross-border business.

What would UK membership of the EEA mean for businesses? Such membership would reverse key Brexit damages: trade barriers would fall, professional qualifications would be mutually recognised again, and companies would find it considerably easier to send employees. Despite its drop from the fifth to ninth place in the ranking of Germany's most important trading partners, the United Kingdom remains high up.

What does the new EU-Switzerland agreement package include? Signed on 2 March 2026, the package regulates Switzerland's accession to the European electricity single market, rejoining the Erasmus+ education programme and cooperation with the European Space Agency. The DIHK urges rapid ratification to provide legal certainty for businesses and safeguard the already close economic interconnection.

Why is modernising the customs union with Turkey so important? The customs union, in place since 1996, is incomplete in its current form: it does not cover services or public procurement, and bilateral trade disputes continue to burden it. A modernisation with binding dispute resolution would provide German companies with more legal certainty for trade with and in Turkey – a market gaining attractiveness through the nearshoring trend.

What does the DIHK mean by "quality before speed" in EU enlargements? The DIHK emphasises that new EU member states must fully meet the so-called Copenhagen criteria – particularly the rule of law. Only in this way can companies trust that contracts will be enforced, property rights protected, and investments secure. A hasty enlargement without adequate reforms jeopardises the stability of the entire single market.

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The full position paper is available here:

(only available in German)