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.