Consell General passes state budget, defeating Concòrdia's push to slash €18M from tourism for housing and

The Consell General approved Andorra's 2026 state budget on Thursday, turning down all five reserve amendments from opposition group Concòrdia despite intense discussions over shifting tourism promotion funds toward housing and innovation priorities.

Concòrdia, under leader Cerni Escalé, sought to cut Andorra Turisme's direct funding from €24.6 million to €16.6 million—a €8 million reduction—and trim a €10 million ministry transfer, freeing nearly €18 million overall for public housing acquisitions such as the former Hotel Àrtic site and a €2 million hub for business innovation. Deputy leader Núria Segués described the existing allocation as mismatched with fiscal realities, pointing to overlapping ministry duties, issues like the Andorra Cycling Masters event, and rising housing costs up 6% in recent months. She pushed for 2019-level spending amid steady visitor numbers, insisting resources must target core shortages in housing, education, health, and research. Escalé stressed ministry-driven tourism with select events, avoiding duplicated structures.

Social democrats (PS), via Pere Baró, backed the idea, citing redundancies, lack of clarity, and the value of direct government control over tourism strategy.

Majority groups rejected the moves outright. Democrats' Meritxell López highlighted tourism's role in 60% of GDP—€2.7 billion in 2025—crediting Andorra Turisme with doubling visitors and per-visitor spending since 2012. The 2026 allocation rises just 0.7%, bolstered by €5 million from 2025 tourist taxes. Finance Minister Ramon Lladós noted over €15 million in multi-year commitments for premium tourism, cautioning that cuts could undermine income, employment, and fixtures like World Cup ski events. Ciutadans Compromesos' Carles Naudi warned of job threats, while Andorra Endavant's Carine Montaner praised post-pandemic gains and sector approval. López and Lladós countered opacity charges, referencing Tribunal de Comptes oversight.

Ahead of the vote, industry figures voiced alarm. AEAT head Àlex Ruiz, speaking from Fitur alongside Tourism Minister Jordi Torres and Andorra Turisme's Betim Budzaku, opposed the roughly 40% slash as harmful, predicting 5-10% fewer visitors—up to a million—and setbacks to diversification through Cirque du Soleil, Andorra Taste, and Classicand, hitting retail, Naturland, Grandvalira, and Caldea. Grandvalira marketing director David Ledesma deemed it damaging to promotion, staffing, and events, calling for return-on-investment reviews. Unió Hotelera's Jordi París called the proposal unexpected given strong performance and diversification progress, questioning Concòrdia's reasoning.

Concòrdia's remaining amendments also failed: €800,000 from secondary road paving (a parish duty amid spending controls); €5,000 from elderly services to fund unwanted loneliness prevention; and €30,000 for Catalan self-learning centres in Andorra la Vella, Ordino, and Sant Julià de Lòria, after 19 prior commission rejections.

Lawmakers passed revisions to omnibus law 2 following PS and Concòrdia reserves. Passive residents and non-qualified self-employed workers must now deposit non-refundable €50,000 at the AFA (€12,000 per dependant), except on initial refusals; qualified professionals gain priority access. Government regulations will set flexible intervals between temporary permits, replacing rigid five-month gaps for seasonal work; group hiring from origin countries aids firms or multi-site operations; fines of €3,000-€6,000 (or double lost revenue) target simulated relationships, including marriages or economic ties. Concòrdia's indefinite halt on foreign property investments exceeding 49% foreign capital—barring pre-licensed builds or those over €1 million—and PS's six-month deadline for affordable housing legislation were defeated.

Majority changes included extending public pensions to SAAS salaried employees; four months' healthcare coverage for dependants of deceased permit holders; and €400,000 for Comella expansions.

Lladós presented the budget as tackling housing and purchasing power through record outlays in health, education, security, infrastructure, digitalisation, and innovation—without tax rises or debt expansion—against 86% routine costs. Forecasts show €4 billion GDP with 2.8% real growth and 2.7% inflation aiding wage recovery; 2025 ended with a €60 million surplus versus a €35 million deficit projection. Opposition labelled it short-sighted and insufficiently transformative, decrying limited commission scrutiny.