ECOFIN mandates 2026 talks to align Andorra’s monetary agreement

The EU’s Economic and Financial Affairs Council (ECOFIN) approved this week a mandate to open technical negotiations in 2026 to amend Andorra’s 2012 Monetary Agreement so it can be aligned with a prospective EU–Andorra association agreement. The mandate is a preparatory, technical step designed to prevent legal overlap and ensure a coherent division of responsibilities between the two instruments if the association agreement comes into force.

Brussels says the Monetary Agreement, while primarily about currency arrangements, also contains provisions on financial rules, anti‑fraud obligations and aspects related to the free movement of capital that are also covered in the planned association agreement. The Commission and member states consider a clear delimitation of competences necessary to avoid duplication, legal uncertainty and friction between the texts, and the mandate will set the framework for detailed talks to specify which rules would fall under each instrument.

ECOFIN presented the move as institutional planning: the mandate allows the parties to begin technical negotiations in 2026 to adapt the existing Monetary Agreement so the two instruments can operate complementarily. Any amendments negotiated under the mandate would have no immediate effect and would only apply once the association agreement has been approved by Andorran voters in a referendum and subsequently ratified by the Consell General.

Until the association agreement is validated and ratified, the current Monetary Agreement remains in force unchanged. EU officials say advancing negotiations now will help ensure an orderly transition and make it possible to define precisely how obligations would be allocated between the amended Monetary Agreement and the association agreement should the new relationship be adopted.

The Government of Andorra welcomed ECOFIN’s decision, describing the mandate as a key step to guarantee legal coherence and strengthen legal certainty in relations with the European Union. With the mandate in place, EU and Andorran authorities expect to begin technical work in 2026 to make sure the two instruments can coexist without duplication or legal conflict if the association agreement proceeds.