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Schengen: How Europe is ruining its ‘crown jewel’
(www.euractiv.com)
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The passports/ID cards are a different thing again. They're mostly EEA, but additionally there's some recognition with some neighboring countries (the Balkans) and most Europeans can use their credit-card-sized ID card if they want to vacation in destinations like Turkey.
https://en.wikipedia.org/wiki/National_identity_cards_in_the_European_Economic_Area