In my last post, I described how, as a result of objections to an EEA Court by the ECJ, an EFTA Court was set up instead. A two pillar structure was established, with an EFTA Surveillance Authority being granted powers corresponding to those of the Commission in its surveillance role. The EFTA Court operates in parallel to the Court of Justice of the European Union (CJEU or more commonly, ECJ), and has jurisdiction with regard to the three EFTA-EEA states, but not to Switzerland.
Broadly speaking, the EEA Agreement was designed to allow the EFTA nations to participate in the Single Market without the loss of national sovereignty that was inherent in membership in the European Community. It was intended to be an inter-governmental treaty, not one that brought into being a supranational entity with powers over nation states. It has been observed, however, that since its inception, the EEA has developed in a supranational direction, owing primarily to a series of judgements from the EFTA Court, in several cases finding in favour of litigants against one of the EFTA states.