EU Council Debates Final Draft of Andorra and San Marino Association Agreements

The EFTA working group in the EU Council is meeting today in Brussels to debate the final draft of Andorra's association agreement with the European Union and San Marino, focusing heavily on its legal nature and key annexes.

This follows a session on March 10 where parts of the agreement were reviewed without reaching consensus. Sources indicate Spain, which has held out on classifying the deal as mixed—requiring ratification by all EU national parliaments alongside the European Parliament—may lift its block today. Madrid linked its stance to advances in UK negotiations over Gibraltar, including border fence removal and deeper Schengen integration. With those talks reportedly progressing, other EU states already favor the mixed status, potentially paving the way for rapid decisions if consensus emerges.

No final agreement was reached at last week's meeting, but today's discussions center on annexes covering tobacco trade, free movement of people, immigration, air transport, public security safeguards, and financial services access. On tobacco, despite taxation falling outside the agreement's scope, Andorra commits to drawing inspiration from EU rules on tobacco product taxes to secure adequate state revenues and strengthen anti-smuggling cooperation with France, Spain, and EU bodies. Financial market access will hinge on a thorough evaluation by European supervisory authorities like the European Banking Authority, delivering opinions via the European Commission.

Progressistes-SDP, poised to exit the State Pact on Europe this Wednesday, released official documents from recent talks to push for broader transparency. The party argues the agreement "cannot be seen as an exclusive project of the government or pact parties, but as a collective tool to secure Andorra's economic, social, and institutional future." It insists the process must not be viewed "as an isolated technical matter," but as a vital political step demanding public involvement.

The government in Andorra la Vella anticipates formalizing a timeline for signing and European Parliament ratification once the Council approves the mixed nature, though details on a potential referendum or provisional application remain under legal review. Bulgaria's position, amid a banking scandal linked to a San Marino bank bid, could also influence proceedings.