EU nationals and Euro Union

I'm a bit confused about something in the game.

I manage in a nation where only 5 non EU players may be registered. I have to assume this means 5 non EUROPEAN players.

European players from nations who are not in the European Union (such as Albania, Montenegro, Serbia, Ukraine, Russia) must be registered as Non EU players despite them being European.

However, other players from nations who are not in the European Union such as Norway, Switzerland, and I believe Iceland, do not need to registered as Non EU players.

Why is this?

Certain countries have signed treaties with the EU that essentially make them part of the EU for freedom-of-workers'-movement purposes. The three you mentioned in your penultimate paragraph are all such countries.

Great thanks, that makes a lot more sense more.

Great diction by the way.

Iceland, Norway and Switzerland are a part of the Schengen Area and the European Free Trade Association.. This gives them many of the same regulations and treaties as being members of the European Union would, without actually being members. This includes the free movement of workers. In FM terms, they are considered for all intents and purposes the same as a member of the European Union.

So Non-EU in FM means neither European Union nor European Free Trade Association/Schengen Area.