Bulgaria Blocks EU-Andorra Deal over San Marino Bank Dispute

The Coreper meeting ended without the unanimity needed to advance Andorra's association agreement with the EU, as Bulgaria maintained its blocking reserve over a financial dispute involving San Marino.

The Committee of Permanent Representatives (Coreper), comprising ambassadors from the 27 EU member states, failed to reach consensus on the legal nature of the agreement during its session on Friday. This followed the Cypriot presidency's decision to escalate the discussion from the EFTA working group, despite the lack of prior agreement there. Sources indicate the Cypriot presidency views the dossier as a priority and plans to reschedule it for upcoming Coreper meetings, which are set for 3, 5, 8 and 10 June, though no specific date has been confirmed.

Bulgaria reiterated its ongoing scrutiny linked to a San Marino judicial probe into a failed takeover attempt of Banca di San Marino by the Bulgarian investment fund Starcom. The case has frozen €15 million from the fund in San Marino, and Bulgarian officials have signalled that progress on this issue is required before supporting ratification. Despite recent unanimous Italian parliamentary backing for the agreement and optimistic remarks from Portuguese Prime Minister Luís Montenegro during his Principality visit—stating conditions existed for unanimity—the impasse persists.

The Cypriot presidency, ending on 30 June, elevated the text to Coreper as a preparatory step before the European Parliament, even without full EFTA endorsement. EU insiders expect the agreement to be classified as mixed, but unanimity among member states remains essential. Previous EFTA discussions also stalled on the same grounds, confirming persistent divergences. Andorra must await further talks to move forward.