Andorra, the country of the Pyrenees founded in 1278 in the Seu Vella castle in Lleida with the signature of the Pariatges between the Count of Foix and the Bishop of Urgell, is one of the oldest States in Europe, a member of the international sphere in the most relevant forums of multilateralism that characterizes the most solid foundation of international politics in our times.
We can date the modern era of Andorra from 1993 with the proclamation of the Constitution on March 14, which establishes the country as an Independent State of Democratic and Social Law, in the form of a parliamentary Co-Principality.
In these three decades Andorra has developed a process of political transformation, economic opening and homologation with Europe and the OECD. Next June 3 will mark the 30th anniversary of the establishment of diplomatic relations with Spain with the exchange of ambassadors. In addition, Andorra participates in two multilateral forums linked to its neighboring countries, Spain and France, such as the Ibero-American Summit, which it presided over in 2021, and the Francophonie.
The last five years that I have witnessed, representing Spain, the transformation of Andorra, I have seen the country’s struggle to recover from Covid-19, with notable success, based on strategic direction and citizen collaboration that has counted on a health system and health facilities that in no case collapsed and that even treated patients from neighboring countries.
I have coincided these five years with two government caps. The first, Antoni Martí, began a process of economic openness, tax homologation with the environment and transparency that had a concretion in the implementation of the negotiation of the association agreement with the European Union.
With the head of the Government for the last four years, Xavier Espot, the negotiation with the European Union is promoted, Andorra leaves the OECD list of tax havens, adheres in 2020 to the International Monetary Fund and the Development Bank of the Council of Europe and, recently, the Framework Agreement with the European Investment Bank was ratified.
In this period in which the Covid-19 has had a role that no country would have wanted, Andorra has taken measures to help the economy in the form of loans guaranteed by the State, the application of ERTE, a solidarity fund and measures prosecutors that help businesses and families.
In the political crisis that Europe is suffering after Covid-19, the invasion of Ukraine by Russia, Andorra also positioned itself from day one on the side of Europe and most of the international community, since it has carried out the sanctions that the European Union had approved and implemented. It was certainly a difficult move for a historically neutral country, but it was a test of commitment to Europe and to neighboring countries.
Andorra’s economy is undergoing a restructuring process, with its strategic sectors fully adapted to current times and aligned with European negotiations.
The banking sector, after the BPA crisis, has carried out a successful merger process last year, in which it has gone from five to three entities, which will make it more competitive and prepared for the European internal market, with the changes and guarantees that the negotiators of the association agreement obtain from the European process.
The tourism sector, increasingly important in the Andorran economy, has made great progress in the seasonal adjustment of the offer. A tourism based on the mountains and snow cannot give up the periods in which skiing is not relevant or does not exist. The deseasonalisation, with the offer throughout the year of tours of nature, hiking, adventure, culture and gastronomy, is today a reality in Andorra and an example in the Pyrenees.
Finally, the construction sector, very relevant in recent years since 2018, has been recovering from the crisis with significant growth. It has a pending issue, which is to solve housing problems, one of the most pressing in the country, a country that in the other dimensions with social impact –security, education and health– passes European standards with flying colors. I end this review by returning to the negotiation with the European Union. For a year there has been a positive change in the negotiating process, as the Commission took charge of it, on the European side, with a vice-president leading the negotiations. Spain, through its Prime Minister, Pedro Sánchez, and its Foreign Minister, José Manuel Albares, has always conveyed its support for Andorra’s association with the European Union. In my opinion, I do not rule out, and it would be desirable, that the negotiation process culminate at the end of 2023 under the Spanish presidency of the Council of the European Union.
