Benefits of joining the European Union  Both Norway and Switzerland already gain from their economic association with the European Union, but they would realise much greater benefits if they formally joined the organisation. Being imperfectly integrated into the European economy means that consumers pay higher prices for goods and services than citizens of EU countries. Businesses are sheltered from full competition, which can lead to complacency and a loss of global competitiveness. And the nature of their relationships with Brussels means that their economies are inherently fragile – bilateral agreements could be cancelled by either side at any time. This would have little impact on the wider EU-economy, but would devastate much smaller Norway or Switzerland. The risks this involves were brought home in 2008 when Swiss voters had to approve an extension of the freedom of movement under the Schengen agreement to new EU-members Romania and Bulgaria; if the referendum had been rejected, the EU would have cancelled the whole bilateral deal on Schengen. [1] So unless the two countries stay in step with the EU as it moves forward towards integration, they may lose many of the benefits they have already acquired. Given that in recent deals the EU has been relatively generous in the expectation that Switzerland and Norway will be encouraged to join the Union, there is a further risk that future treatment will be much less sympathetic if Brussels recognises that this is not going to happen.  [1] EurActiv.com, ‘Populists defeated in Swiss EU labour poll’, 2009