EU Expands Market Access to Andorra and San Marron

The European Parliament has adopted a resolution on a new Association Agreement between the EU and the small European states of Andorra and San Marino. The agreement, which will be in force from 2024 to 2029, replaces older customs‑union deals that were signed in 1990 (Andorra) and 1991 (San Marino). It is the most comprehensive deal the EU has ever made with a non‑EU country.

Key points

• Purpose – The agreement deepens political, economic and cultural ties, gives Andorra and San Marino access to the EU’s single market, and supports their economic development while respecting their small size and unique needs.

• Structure – It contains a framework agreement, seven protocols, two state‑specific protocols and 25 technical annexes that bring EU law into force in the two countries.

• Four freedoms – The deal guarantees the free movement of goods, services, capital and people. It also allows EU citizens to live and work in Andorra and San Marino under the same rules as in EU member states, with some limited restrictions on the number of workers in certain sectors.

• Financial services – Access to the EU market for banks and insurers will be phased in over a maximum of 15 years. The agreement requires strict compliance with EU anti‑money‑laundering rules, transparency on beneficial ownership, and cooperation on sanctions. The European Supervisory Authorities will monitor the financial sectors and can suspend market access if needed.

• Tax and customs – The agreement strengthens tax cooperation, information exchange, and transparency. It adopts EU standards on base‑erosion and profit‑shifting and updates existing tax‑cooperation agreements.

• Other policy areas – The deal covers research, environment, climate action, education, culture, consumer protection, civil protection, public health, and cross‑border cooperation. It also opens the way for Andorra and San Marino to receive EU regional funds and to participate in EU programmes such as Interreg.

• Monitoring and support – The EU will provide institutional and technical assistance to help the two states align with EU law. A dispute‑settlement mechanism with the EU Court of Justice will resolve any disagreements. The agreement includes a monitoring system for all sectors, especially telecommunications, transport and energy.

• Parliamentary and stakeholder involvement – A Parliamentary Association Committee (PAC) will keep the European Parliament informed and can advise the joint EU‑Andorra and EU‑San Marino committees. Economic and social partners will also be consulted. The PAC will receive reports from the European Supervisory Authorities on financial services.

• Political context – Andorra and San Marino are close, like‑minded neighbours that share democratic values and strong ties with the EU. They support the EU’s foreign‑policy positions, have taken measures against Russia’s aggression, and host Ukrainian refugees. The agreement is seen as a step toward greater security and prosperity for the region.

The resolution urges the Council, the Commission, the High Representative for Foreign Affairs and the governments and parliaments of the EU, Andorra and San Marino to adopt the agreement and to ensure its swift implementation.