EU, Andorra and San Marino sign association agreement

At the heart of the agreement is the participation of Andorra and San Marino in an extended, homogeneous internal market, governed by the same rules and conditions of fair competition that apply to the rest of the EU. For citizens, businesses and public administrations, this means greater legal certainty and predictability. The text facilitates trade, supports investment and encourages cross-border economic activity.

A separate chapter deals with financial services. Access to the internal market in this sector will be phased in and subject to specific conditions: the regulatory and supervisory frameworks of both countries must be assessed for soundness, with the European Supervisory Authorities playing a role in the evaluation and monitoring.

The agreement also establishes a framework for dialogue and cooperation in various areas of common interest: research and innovation, education, social policy, the environment, consumer protection, culture, and regional cooperation. The text takes into account the specific characteristics of Andorra and San Marino, including their proximity to neighbouring Member States, their geography, small size, and limited population.

Alongside the Association Agreement, the EU has also signed updated monetary agreements with the two countries. The original agreements, which govern the use of the euro and the associated obligations, date back to 2011 for Andorra and 2012 for San Marino. The amendments are intended to remove any overlap with the obligations under the new agreement and to provide greater legal certainty.

The negotiations were lengthy. Based on the directives the Council adopted in December 2014, the Commission also began talks with the Principality of Monaco in 2015. However, in 2023, in agreement with the Commission, these were suspended, while negotiations with Andorra and San Marino continued and were successfully concluded in December 2023. On 26 April 2024, the Commission then presented proposals for Council decisions on the signing, provisional application and conclusion of the agreement. In July 2026, the Council authorised the signing and provisional application.

The Irish Minister for European Affairs, Thomas Byrne, who currently holds the rotating presidency of the Council, was very pleased: “I welcome this association agreement with Andorra and San Marino, which will pave the way for a stronger, mutually beneficial and forward-looking partnership.” According to Byrne, the agreement “safeguards the EU’s single market and will provide legal certainty, benefit people and secure future prosperity across the region and Europe as a whole.”

The approval process now remains. As this is a mixed agreement, a pre-signature by the Member States was scheduled for September, followed by the Commission’s signature on behalf of the EU. Following the signing, the Council will seek the consent of the European Parliament, after which the dossier will return to the Council for formal conclusion. The agreement will be ready for provisional application as soon as the respective ratification procedures in Andorra and San Marino allow.