The Agreement establishing an association between the EU and the Principality of Andorra and the Republic of San Marino
This agreement establishes a closer association between the EU, Andorra, and San Marino, aiming to strengthen political and economic ties. It replaces previous agreements and aims to foster prosperity, stability, and cooperation based on shared values. The agreement directly affects businesses, consumers, and citizens in the EU, Andorra, and San Marino by facilitating closer economic integration. It also impacts the governments and regulatory bodies of Andorra and San Marino, requiring alignment with EU legislation. Key changes include Andorra and San Marino gaining access to the EU's internal market, comparable to EEA countries, with phased entry for financial services. New obligations involve robust enforcement, tax cooperation, and alignment with EU rules on anti-money laundering and financial transparency. The agreement will be implemented progressively, with financial services access phased in over 15 years. Enforcement mechanisms are in place, including potential suspension of market access if deficiencies are found in regulatory or supervisory frameworks.
Analysis
The Association Agreement is the most comprehensive agreement the EU has concluded with any third country.
What changes
- The Association Agreement replaces and supersedes existing bilateral agreements between the EU and Andorra and San Marino.
- A Parliamentary Association Committee (PAC) is established as a pillar of political dialogue between the EU, Andorra, and San Marino.
- The agreement establishes a dispute settlement mechanism with the Court of Justice of the European Union as arbiter.
Expected impact
- Broader access to the internal market will support economic development in Andorra and San Marino, creating new economic and employment opportunities.
- The agreement has the potential to further support economic development in Andorra and San Marino by breaking down barriers to cross-border economic activity.
- Compliance with relevant EU financial supervisory rules must be ensured during the integration of financial services market segments.
Limitations
- The document is an interim report and does not contain the final adopted text of the agreement.
- Specific details on the implementation timeline and exact conditions for market access in all sectors are not fully elaborated.
- The full legal text of the Association Agreement is not provided, only references to its structure and content.
Shadow Rapporteurs
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