Zone 4 – European Federation Association Area (EFAA)

The setting up of this Zone may start, similarly as Zone 3, in parallel to the transition of the Eurozone into the EF. This zone will have its own Treaty, modelled either on the current Association Agreement, or on the Comprehensive Economic and Trade Agreement (CETA) concluded between the EU and Canada in 2017. I will not cover the detail of this Treaty, but rather focus on the differences between the EFSM (Zone 2) and EFAA.

The EFAA will include all current countries that have Association Agreements with the European Union. These countries will have to accept some general conditions, such as those in CETA. Otherwise, the conditions will be specific for a given member, mutually agreed with the EF. Any candidate for the EFSM zone, like Moldova or Kazakhstan, will have to be a member of this zone first. Only upon meeting all the terms of the accession will they be able to join the EFAA zone.

These are the draft principles of the EFAA Treaty that I would propose:

  1. Principles and values. The joining members will have to strive to implement the Universal Values of Humanity, although they can get an exemption during the negotiation for some cultural or religious differences.
  2. Respect for the rulings of the European Court of Justice. Each member will have to accept the verdict of the ECJ in any aspects of its relationship with the EF.
  3. Trading relationship with nonEF countries. An EFAA member state can enter into trading relationship with a non-EF country without a prior agreement with the EF, unless it is also a member of the EF Customs Union.
  4. Fiscal policy and common budget. Members could voluntarily apply some fiscal policies of the EF.
  5. Each country uses its own currency. However, members may use Euro currency as a shadowing currency, taking of course all the risks that such a policy involves.
  6. Opt-outs. Members may declare opt-outs of any agreed policy of the EFAA unless it violates the principles of the EFAA Treaty. The ultimate arbiter will be the European Court of Justice.

By creating EFAA, the Federation would have the means to create much closer direct relationships with probably half of the countries in the world, addressing the needs and aspiration of hundreds of millions of people world-wide. This would make an additional natural pull for other countries wanting to join the Federation, important if it wants to act as a de facto World Government. The reach of the Federation into other continents will at the same time help spread and re-enforce Universal Values of Humanity in many more countries.