1995 enlargement of the European Union

The 1995 enlargement of the European Union saw Austria, Finland and Sweden accede to the European Union (EU). This was the EU's fourth enlargement and came into effect on the 1 January of that year. All these states were previous members of the European Free Trade Association (EFTA) and had traditionally been less interested in joining the EU than other European countries. Norway had negotiated to join alongside the other three but following the signing of the treaty, membership was turned down by the Norwegian electorate in the 1994 national referendum. Switzerland also applied for membership on 26 May 1992, but withdrew it after a negative referendum result on 6 December 1992 (and that was not changed after a second negative referendum result on 4 March 2001).

The three states, plus Norway and Switzerland (which never joined due to their referendum results) began to look at stronger ties with the EU (which was the European Economic Community (EEC) before 1993) towards the end of the 1980s for three principal reasons: the 1980s economic downturn in Europe, difficulties for EFTA companies to export to the EU and the end of the Cold War.

After the 1970s Europe experienced a downturn which led to leaders launching of the Single European Act which set to create a single market by 1992. The effect of this was that EFTA states found it harder to export to the EEC and businesses (including large EFTA corporations such as Volvo) wished to relocate within the new single market making the downturn worse for EFTA. EFTA states began to discuss closer links with the EEC despite its domestic unpopularity.

Finally, Austria, Finland and Sweden were neutral in the Cold War so membership of an organisation developing a common foreign and security policy would be incompatible with that. As that obstacle was removed, the desire to pursue membership grew stronger.

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