Andorra Allocates €35M Surplus for 150-200 Affordable Housing Units

The Andorran government plans to allocate €35 million from the 2025 budget surplus of €88 million to expand the public affordable rental housing stock by 150 to 200 units. An additional €5.15 million will fund upgrades at Nostra Senyora de Meritxell Hospital, including advanced medical equipment.

Ministers of Finance Ramon Lladós, Presidency, Economy, Work and Housing Conxita Marsol, and Health Helena Mas presented the measures during a press conference. The funding requires approval of a bill amending the Law on Sustainability of Public Finances and Budgetary and Fiscal Stability—known as the "golden rule"—along with extraordinary credits. Parliament is set to vote on it this Thursday under an emergency procedure, allowing passage within 48 hours.

For housing, the government will launch a public tender within about one month of approval to acquire multi-family buildings or, secondarily, hotels needing reforms for conversion into affordable rentals. Priority goes to nearly completed structures to enable quick integration into the public park, targeting people at risk of residential exclusion due to personal, social or psychosocial factors. Breakdown includes €21.6 million for existing buildings, €6.4 million for land suitable for new blocks, €6 million for construction works, and €1 million for preliminary projects. Funds can be reallocated as needed. The initiative builds on recent investments, with 470 public units currently under construction across parishes and a goal of 650 by the end of the legislature.

Hospital investments focus on modernisation. €2 million will buy a high-precision surgical robot to handle complex procedures in urology (such as prostate operations), colorectal surgery, and gynaecological oncology—reducing external referrals and improving outcomes through greater accuracy and safety. Another €2.4 million covers a state-of-the-art MRI machine, including installation, to provide on-site high-precision diagnostics and cut patient travel to private CASS-contracted centres. €750,000 will upgrade the helipad to international standards, addressing leaks and wear beyond the budgeted €800,000. Mas noted these steps aim to attract medical talent and achieve healthcare excellence, with €27 million invested in health over the legislature and total 2026 spending reaching €178 million.

Lladós attributed the surplus to budgetary rigour and economic performance, describing the package as practical short-term use of financial strength while continuing debt reduction at a slower pace. The bill also adjusts rules for the pension reserve fund and administration code to facilitate potential purchases from public entities.