Andorra opens up to Europe: what does the association agreement with the EU consist of?

BrusselsAndorra takes another step to get closer to the European Union. The head of the Andorran government, Xavier Espot, has celebrated the start of a "new stage" after sealing the association agreement with Brussels this Monday, which should allow the principality to integrate into the bloc's market.

The text, which has been under negotiation for more than ten years, will have to be revalidated by the Andorrans in a referendum. Once the Andorran citizens and the European Parliament endorse it, the agreement will open Andorra's doors to the single market and, with it, to the free movement of people, goods, and capital. The principality will not become a member state of the EU nor will it formally integrate into the Schengen area, but it will not have border controls with France or Spain thanks to a parallel pact.

The ceremony, shared with San Marino, which has also signed its agreement, was attended by two members of the European Commission: the executive vice-president and commissioner for Trade, Maroš Šefčovič, and the vice-president and commissioner for Economy and Productivity, Valdis Dombrovskis.

Espot has argued that the agreement represents "a leap in quality both for the development of the country and for democratic quality" and an improvement in relations between Andorra and the European Union, which date back to the customs agreement of the nineties. Likewise, he has claimed that the pact reinforces the role of small states as reliable, prosperous countries with capacity for growth.

The agreement gives Andorra access to the internal market with common rules and conditions of fair competition. It offers citizens, businesses, and administrations more legal certainty and predictability, facilitates trade, favors investment, and boosts cross-border activity, while also respecting the particularities of each partner, as read in the European Commission's statement.

The referendum after the elections

The agreement also establishes a framework for dialogue and cooperation in areas of common interest, such as research and innovation, education, social policy, the environment, consumer protection, culture, and regional cooperation. Regarding financial services, integration will be gradual and subject to specific conditions, including an assessment of the robustness of the regulatory and supervisory frameworks of Andorra and San Marino.

The date of the consultation has not yet been announced. However, as Espot has hinted in statements to the media, it will not be held before the European Parliament takes a position, nor during the electoral campaign for the Andorran general elections, scheduled for the spring of next year. "This referendum must be held when the time is right, at the right moment, when there has been a calm, informed debate about the consequences of the agreement and absolutely detached from an electoral contest," said the head of government.