Madeira
Status within the European Union

Madeira is an Outermost Region (OMR) of the European Union, meaning that due to its geographical situation, it is entitled to derogation from some EU policies.

According to the Treaty on the Functioning of the European Union, both primary and secondary European Union law applies to Madeira, with possible derogations to take account of its "structural social and economic situation (...) which is compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development". An example of such derogation is seen in the approval of the International Business Centre of Madeira and other state aid policies to help the rum industry.

It forms part of the European Union customs area, the Schengen Area and the European Union Value Added Tax Area.
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