Décryptage : différences entre l’Europe, l’Union européenne et l’espace Schengen

NAME: Axel Strauss
DATE: 08/07/2024 

Simply put — and geographically speaking — Europe is one of Earth’s seven continents. It’s also no secret that said continent is home to an endless abundance of culture, history, and natural and man-made wonders. All of which also consistently rank it as the world’s top tourist destination. After that, however, things get a bit complicated. 

For example, there’s no definitive answer as to how many countries Europe is actually home to (with the internet’s general consensus averaging at around 50). To add to the confusion, many of these roughly 50 European nations are woven into a complex tapestry of various political and economic entities. And despite the intricacies, understanding the distinctions between these entities can prove crucial for travelers. 
But fear not! AXA — your go-to for top-quality travel insurance for Europe near and far — has compiled a simple breakdown of these unique European complexities below.

What is the EU?
What is the Schengen Zone?
What is the EEA? 
What is the Euro Zone? 
Summary: Key Similarities, Differences, and FAQ 
How else can AXA help?

What is the EU?

First, let’s get geographical Europe out of the way (so to speak). When it comes to the map, the world’s most visited continent spans from the Atlantic Ocean and Portugal in the west to Georgia, Russia, and the Ural Mountains in the east. And vertically — from the Arctic Ocean and Norway in the north to Greece and the Mediterranean Sea in the south. 

However, while the terms “Europe” and “the EU” are often used interchangeably in conversation, they are not —in fact — the same thing. Because while Europe is a purely geographical term (dating way back to the 6th century BCE, mind you), the European Union (or the EU, for short) is a political and economic entity officially established on November 1st, 1993.

What does the EU do?

The EU’s main aim is to promote economic cooperation and peace — with the general idea being that countries that trade together are more likely to both prosper and avoid conflicts. 

For example, it facilitates economic cooperation between its members by creating a single market. That is, it allows for the free movement of people, goods, services, and capital within its borders — thus simplifying travel and trade for its citizens. 

Furthermore, the EU also implements universal policies in areas like agriculture and regional development — working to ensure things like the protection of the environment, workers’ rights, consumer rights, and so on. 

And — being a unified representative of more than two dozen of the world’s most prominent countries — the organization obviously plays a significant role in global politics and economics as well.

How does the EU work?

Here things get a bit more complex. Because how the EU actually does its magic is through a “hybrid” system of supranational and intergovernmental institutions. And — first and foremost — international cooperation, of course. 

Key players that ensure things run smoothly include the European Commission (which proposes legislation); the European Parliament (which represents EU citizens and is directly elected by them); and the Council of the European Union (which represents individual EU member states). 

These institutions work together to pass laws, set policies, manage the EU budget, and so on. And each one, in turn, works with hundreds of smaller, local, national, international, and global institutions and organizations as needed.

Who is in the EU?

EU membership has more than doubled since 1993, with more and more countries joining the 12 original member nations in order to benefit from economic integration and political cooperation.

Thus, as of mid-2024, the EU consists of 27 member countries — each of which has agreed to follow the union's treaties and laws. And these countries range from large economies like Germany and France to smaller nations like Malta and Estonia.

PRO-TIP: The EU also has its own universal currency (i.e., the euro), which is used by two-thirds of its member countries. But don’t worry — more on that in the “Euro Zone” section below.

What is the Schengen Zone?

The Schengen Zone, meanwhile, is a physical and economic area — originally established in 1993 with the implementation of the Schengen Agreement — and, as of mid-2024, comprising more than two dozen European countries. 

What does the Schengen do?

As per the original agreement (signed first by five European nations and named after the village of Schengen in Luxembourg), Schengen countries aim to abolish passport and other types of border control at their mutual borders. All this is to facilitate free and unrestricted movement of people within the Schengen Zone. 

How does the Schengen work?

Thus, this geographical and economic zone enhances travel convenience and promotes tourism and trade among its member states. 

In other words, the Schengen Zone significantly simplifies travel within most of Europe for both residents and visitors. For example, you don’t need a visa to go between Schengen member countries (if you happen to be a Schengen citizen, that is). 

Still, temporary border controls can be reinstated under special circumstances for security reasons. 

Who is in the Schengen Zone?

Moreover — much like the EU, the Schengen Zone is ever-evolving. For example, the membership of countries like Bulgaria, Romania, and Croatia to the Schengen has been under consideration for several years. 

However, the ultimate decision to include new members involves a whole array of social, bureaucratic, and other logistics — that is, complex evaluations of border security measures, adherence to Schengen rules, political consensus among existing member states, and so on. In other words — and, again, much like the EU — the Schengen itself can get quite complicated.

IMPORTANT NOTE: Oh, and keep in mind that while some non-Schengen countries are in the EU, some non-EU countries — like Norway and Switzerland, for example — are in the Schengen Zone. Yeah, we know…

PRO-TRAVEL TIP: Meanwhile, to visit the Schengen Zone as a non-Schengen resident, you’ll likely need a Schengen Visa. But don’t worry — fortunately, that part isn’t that complicated. And — also, fortunately — we have all you need to know about that in the “How else can AXA help?” section below!

What is the EEA?

As for the EEA — aka the European Economic Area — this part is more economic than geographical. Essentially, the EEA is an agreement that extends the European Union's aforementioned single market to non-EU member countries in Europe. 

The EEA includes three EFTA (i.e., European Free Trade Association) member states: Norway, Iceland, and Liechtenstein. And these countries participate in the EU's internal market — allowing for the free movement of goods, services, capital, and persons. 

In other words, while Norway, Iceland, and Liechtenstein are not part of the EU, they adopt most EU legislation related to the single market. 

What does the EEA do?

Well, here’s how the European Parliament puts it:
“The European Economic Area (EEA) was set up in 1994 to extend the EU’s provisions on its internal market to the European Free Trade Area (EFTA) countries. 

The EEA’s parties are Norway, Iceland and Liechtenstein. Switzerland is a member of EFTA but not of the EEA. The EU and Nordic EEA EFTA partners (Norway and Iceland) are also linked by various ‘northern policies’ and forums that focus on the rapidly evolving northern reaches of Europe and the Arctic region as a whole.”

Moreover, the EEA Agreement also covers cooperation in areas like research and development, education, and social policy — promoting economic integration, growth, and stability across Europe. Or, again, across most of it.

How does the EEA work?

The EEA basically operates via economic integration between its member states and the EU. Like the EU, it allows for the free movement of goods, services, capital, and persons within its internal market. 

In other words, EEA countries adopt most EU legislation. They therefore contribute financially (and otherwise) to its programs and initiatives, as well as participate in decision-making processes, elections, consultations, and the like.

Who is in the EEA?

The European Economic Area includes 30 countries in total, and they are:

-The 27 European Union (EU) member states;

-Three member states of the European Free Trade Association (EFTA): Norway, Iceland, and Liechtenstein.

What is the Euro Zone?

And, finally, the Euro Zone — also known as the Eurozone and/or the Euro Area (and, other than that, perhaps the least complicated part). The Euro Zone refers to the group of European Union (EU) member states that have adopted the euro (€) as their official currency.

It was first established on January 1, 1999 — when the euro was introduced electronically for accounting purposes and financial transactions. Physical euro banknotes and coins were, in turn, introduced on January 1, 2002, replacing the national currencies of participating EU member states in stages. 

What does the Eurozone do?

The Eurozone aims to promote economic stability and growth among its member states through coordinated monetary policies. The key player here is the European Central Bank (aka the ECB) — and it sets interest rates, manages the euro's monetary policy, maintains price stability, and so on.

How does the Eurozone work?

Again, the Eurozone operates under a unified monetary policy framework overseen by the ECB. Member states adhere to strict fiscal criteria to ensure financial stability and prevent excessive government deficits. 

Meanwhile, the Eurogroup — composed of finance ministers from Eurozone countries — coordinates economic policies and discusses issues related to the common currency.

Who is in the Eurozone?

As of mid-2024, there are 20 EU member states (i.e., countries that use the euro as their official currency). This includes most of the “famous” ones, namely: 

1. Austria
2. Belgium
3. Cyprus
4. Croatia
5. Estonia
6. Finland
7. France
8. Germany
9. Greece
10. Ireland
11. Italy
12. Latvia
13. Lithuania
14. Luxembourg
15. Malta
16. Netherlands
17. Portugal
18. Slovakia
19. Slovenia
20. Spain

Which EU countries are not in the Eurozone?

However, membership in the Eurozone requires meeting stringent economic criteria (set out in the Maastricht Treaty) — including low inflation rates, sustainable public finances, stable exchange rates, and so on.

Thus, the following EU nations have yet to adopt the euro as their currency:

1. Bulgaria
2. Czech Republic
3. Denmark
4. Hungary
5. Poland
6. Romania
7. Sweden

Which non-EU and non-Schengen countries also use the Euro?

Meanwhile, several non-EU and non-Schengen countries use the Euro as their official currency as well. These are countries that have either adopted the Euro unilaterally or through formal agreements with the EU. And they are:

1. Kosovo.
2. Montenegro.
3. Andorra.
4. San Marino.
5. Monaco.
6. Vatican City

Summary: Key Similarities, Differences, and FAQ

Now, we know that’s a lot to process. So to sum up, here’s a quick overview of the above entities — followed by some key similarities, differences, and common questions.

-The European Union (EU) is a political and economic union of 27 member countries focused on economic cooperation and policy harmonization. 

-The Schengen Zone comprises a similar (but growing) number of European countries that have abolished internal border controls for the free movement of people. 

-The European Economic Area (EEA) extends the EU's single market to non-EU countries like Norway, Iceland, and Liechtenstein. 

-And the Eurozone consists of 20 EU member states that use the euro as their official currency, coordinating monetary policies under the European Central Bank (ECB).

Similarities

All four entities share a commitment to promoting economic integration and cooperation among most European countries. 

All four also facilitate the free movement of goods, services, capital, and (sometimes) people across borders — aiming to enhance economic stability and growth across most of the continent of Europe.

Differences

However, each entity is quite nuanced when it comes to size, purpose, functionality, and geographical and socio-economical reach.

For example, the EU is primarily a political and economic union, while the Schengen Zone focuses specifically on border control and free movement of people. 

Meanwhile, the EEA extends the single market beyond EU borders but does not cover all EU policies (such as agriculture, for instance). 

And the Eurozone revolves around monetary union. That is, it aims to use the euro (€) as its common currency, therefore impacting economic policies and financial stability quite differently than the other three entities above.

FAQ

What is the difference between the Schengen Zone and the European Union (in simple terms)?

The European Union (EU) is a political and economic union of 27 member countries, while the Schengen Area comprises roughly the same amount of European countries that have abolished internal border controls for free movement.

What is the difference between a Schengen visa and a European visa?

A Schengen visa allows entry into any Schengen country, while a European visa may refer to visas required for non-Schengen EU countries (such as Cyprus or Ireland,).

Why are some EU countries not in the Schengen Zone?

Some EU countries have not yet met the criteria for joining the Schengen Area (which involves ensuring strong border security and adherence to Schengen rules).

Are the Eurozone and European Union the same?

No. That is, the Eurozone refers specifically to the 20 EU member states that use the euro as their currency. The EU, meanwhile, includes all 27 member countries (some of which do not use the euro).

Which European countries are not in the EU?

Again, with roughly 50 countries total — a good chunk of Europe is not in the EU (and/or the Schengen Zone). For example, countries like Norway, Switzerland, Iceland, Liechtenstein, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Ukraine, Moldova, Belarus, Kosovo, Russia, etc. — each maintain its own unique relationship with the EU. And this relationship can range from membership in EFTA, the EEA, and/or the Eurozone to individual bilateral agreements to no formal relationship at all.

How else can AXA help?

We hope familiarizing yourself with the detailed guide above will help you have a clearer picture of what’s what before your journey through the fascinating land of Europe. 

And if you are indeed planning a Eurotrip in the near future, there’s actually one more way that AXA can help you tenfold. And that’s by providing you with some affordable, top-quality travel insurance for Europe — near and far. After all, it’s what we do best!

Moreover, if you need a Schengen visa — we can also tell you all about the different types of Schengen visas, all the necessary Schengen visa requirements, Schengen visa costs, and much more. And — perhaps most importantly — we’ll also gladly provide you with one of the mandatory requirements for being granted a Schengen visa. And that is (you guessed it) — top-quality, affordable Schengen travel insurance. 

So once you’ve wrapped your head around the EU, the Schengen Zone, the Eurozone, the EEA, and Europe in general (as much as is humanly possible, of course) — take a breather, and then learn about (and compare) AXA’s 3 comprehensive travel plans. We guarantee that all three — while maybe not as culturally and historically diverse — are lightyears less complicated than Europe itself.

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