Andorra Divided on EU Pact as Espot Addresses Housing Crisis in New Year's Speech

Public opinion in Andorra shows even division on the EU association agreement, with 35.2% anticipating mainly positive effects, 34% negative, and a record 20.1% undecided, per the AR+I Observatory's second-half 2025 survey. Neutral views stood at 8.9%, and 67.6% of respondents reported insufficient information. These positions have remained stable over the past decade, though uncertainty has doubled amid perceptions of weak government communication, deemed average or poor by over 60%.

In his New Year's address from Casa Masover at Casa Rossell in La Cortinada—now home to the School of Sports and Mountain Professions Training—Head of Government Xavier Espot framed 2026 as pivotal for the EU pact. He stated the EU Council would determine its legal nature in January, paving the way for signature, European Parliament ratification, and a subsequent referendum without a fixed date. Espot stressed transparency, direct citizen involvement, and responsible decision-making in the "complex and lengthy" process, noting Andorra must build a shared future with neighbors and the EU. He selected the symbolic venue to highlight mountains as natural heritage, sustainability as a policy cornerstone, and historical consensus-building.

Housing pressures, fueled by over 10% demographic growth in three and a half years, remain acute, with average rents at 23-25 euros per square metre, record prices per square metre, and over 42% of contracts lasting three years or less—often evading protections through short-term deals and evictions. Espot reiterated gradual rental deregulation starting January 2027, with "clear limits," safeguards, and monitoring to prevent disproportionate hikes, ensure legal and social security for all parties, and maximize tenant continuity in current homes. He cited unprecedented public investments, including expanding public housing toward 500 units by 2027, first-home purchase aids with government-backed guarantees and interest for seven years, a minimum wage exceeding €1,500 in 2026, and a new law consolidating sustainable growth measures to better regulate migration and foreign investment. The address also updated the "Tracem el futur d’Andorra en un món que canvia" process, with a citizen assembly in January 2026 and results in March to guide public decisions.

Political reactions persist. Democrats' Jordi Jordana credits existing rules and the forthcoming entry/exit system for managing inflows while businesses require labor, attributing concerns to European-wide housing strains. Concòrdia's Cerni Escalé deems growth "invasive," overwhelming services and cohesion while favoring select interests, and demands immediate quotas, anti-speculation measures, and a neutral referendum with equal campaign funding. PS deputy president Pere Baró rejects scapegoating migrants, calls for a comprehensive housing law, and urges balanced growth. Andorra Endavant's Carine Montaner points to discrepancies between official narratives and daily realities on security and housing.

New Year's wishes from parties underscore housing and migration priorities. Environment Minister Guillem Casal aims for 500 public units by 2027 and balanced rental transitions. Union leader Gabriel Ubach seeks a "180-degree shift" in housing policies to curb living costs, while employers' head Gerard Cadena highlights housing barriers to hiring amid entry/exit adaptations. No referendum date is set, but all agree debate must intensify on these issues.