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Andorra's EU Association Talks Stall in Brussels Over Spain's Reservations as Domestic Pact Expands

EFTA working group awaits unanimity amid treaty concerns, while state pact adds business groups amid SDP suspension, with border deal nearing signature ahead of EU Entry/Exit System.

Key Points

  • Andorra's EU association talks stalled in Brussels due to Spain's reservations on treaty's mixed legal nature.
  • EFTA working group reviews annexes on tobacco, free movement, financial services, and air transport.
  • Domestic state pact expands to include business groups CEA, EFA, and Chamber of Commerce.
  • SDP suspends pact participation over insufficient inclusion of economic and social actors; border deal nears signature.

Andorra's EU association agreement negotiations continue in Brussels, with the EFTA working group yet to secure unanimity due to Spain's ongoing study reservation on the treaty's mixed legal nature under Cyprus's presidency. Officials anticipate resolution in coming weeks, paving the way for Coreper review, Council approval, signature, and ratification—requiring national parliamentary consent alongside European Parliament endorsement. The process remains stalled pending these steps, with no provisional application possible before Consell General approval following a binding referendum.

Thursday's EFTA meeting reviewed draft annexes covering tobacco rules (outside fiscal terms, aligning with EU standards to protect revenues and combat smuggling alongside France, Spain, and EU bodies), free movement, public security exceptions, financial services (subject to EBA, ESMA, and EIOPA scrutiny), and air transport (with an eight-year review clause). Dispute mechanisms, EU law adaptations, and transitional periods were also addressed.

Domestically, the state pact meeting on Wednesday admitted business organizations CEA, EFA, and the Chamber of Commerce as full members after they endorsed the founding document, which outlines rights and obligations. Head of Government Xavier Espot described the step as creating a "more diverse and plural" body to enrich discussions ahead of the referendum. He noted plans to extend invitations to unions like USdA and the Council of Professional Colleges, emphasizing proactive outreach to strengthen the pact. Espot, who met SDP's Jaume Bartumeu beforehand, said the inclusion fully addresses the party's concerns over economic and social actor integration.

This followed Progressistes de les Decisions-Socialistes Demòcrates (SDP)'s Wednesday suspension of pact participation, announced by president Josep Roig as a "very considered" move over insufficient inclusion of economic, union, and social groups with effective voice. Bartumeu, the party's pact representative, criticized State Secretary Landry Riba's outright opposition to broader involvement, calling the current model a "failure" with inadequate transparency and representativity—echoing proposals from February 4 and 25 meetings. SDP stressed continued support for the EU deal but insists on full incorporation of these actors, not interim formulas, maintaining the suspension pending implementation details. The party is actively engaging entities, co-princes, and Spanish and French ambassadors.

Business and union reactions were cautiously positive. USdA's Gabriel Ubach welcomed potential proactivity but questioned timing, given the advanced Brussels text, insisting on real influence over optics and a pre-signature referendum. The Council of Professional Colleges' Sílvia Estrada expressed readiness to join and listen despite criticisms of influx risks. Business groups see opportunities in market access but demand safeguards against regulatory burdens.

Riba will brief the Foreign Affairs legislative commission this week at parliamentary request, particularly for non-pact parties. Border management talks, finalized with the European Commission and nearing signature before April 10's Entry/Exit System launch, aim to prevent systematic frontier checks; minor member-state amendments remain, with reassurances against disruptions. The EFTA group reconvenes soon.

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