Andorra's Espot Defends 2010 Economic Opening as Crisis Savior

Andorra's head of government, Xavier Espot, defended the country's economic opening initiated around 2010 as a key factor in its recovery from crisis, while acknowledging ongoing challenges during an interview at the 37th Pyrenees Business Meeting in La Seu d'Urgell.

Speaking with journalist Josep Puigbó on Thursday, Espot recalled Andorra's situation in 2010 amid a deep economic downturn, marked by rising unemployment and population outflows. He argued that opening up to the world prevented a decade-long recession, fostering growth and new high-value sectors instead. "It is much better to manage wealth than to distribute poverty," he stated.

Espot admitted the process remains incomplete, with the economy still overly reliant on traditional pillars like commerce, tourism, construction, and banking. Diversification efforts continue, he said, noting that growth has enabled ambitions such as allocating 7% of the budget to innovation by 2040—a target unattainable without recent prosperity.

On housing pressures linked to expansion, Espot rejected claims pinning the issue solely on foreign investment, calling it "cheating oneself." He described the crisis as multifactorial, involving population inflows, family structure shifts, and market dynamics. The government has responded with measures including bans on foreign property developments, purchase limits, tourist rental regulations, and incentives for vacant homes.

Espot stressed the need for private sector involvement alongside public efforts and highlighted the stalled EU association agreement due to Bulgaria's resistance over San Marino-related disputes. Many EU states are working to resolve it in coming weeks, he said, with a referendum planned post-ratification by the European Parliament—though its timing relative to elections remains uncertain.

He dismissed opposition suggestions of renegotiation as unrealistic and reiterated plans to step back from frontline politics after eight years as head of government and prior ministerial roles, at age 47, to make way for fresh perspectives.