2013年-CEPS欧洲政策研究中心_Andorra_and_the_European_Union_152页_792kb

Summary of ANDORRA and the EUROPEAN UNION Relationship

Core Content

This report by Michael Emerson analyses the potential future development of Andorra's relationship with the European Union (EU) and outlines the steps necessary for a deeper integration. It explores the current state of Andorran-EU relations, the strengths and weaknesses of the Andorran economy, and the opportunities for closer cooperation with the EU. The report also considers the broader context of the EU's neighbourhood policy and the experiences of other micro-states and autonomies.

Main Views

1. The Condition of the Andorran Economy

• Economic Growth: In the second half of the 20th century, Andorra experienced rapid economic growth, driven by tourism, real estate, commerce, and financial services.
• Population Growth: The population increased 14 times, largely due to immigration.
• Current Challenges: The economy faces structural constraints such as environmental limits, a shortening winter season, loss of competitive advantage, and international pressures to align with fiscal and regulatory standards.
• Economic Model: The government has introduced the "Andorra 2020" programme to promote new service sectors, rebranding, and tax reforms to sustain growth.

2. New Needs and Opportunities

• Revitalisation Plan: The "Andorra 2020" programme aims to attract new service sectors and modernise the economy.
• Comparative Advantages:
  • Modern urban infrastructure
  • Multilingual and cosmopolitan population
  • Potential for location-free business services using new technologies
  • High quality of life and low taxation
  • Established financial services sector
• Need for Integration: Deeper integration with the EU is seen as essential for leveraging these advantages and addressing current economic challenges.

3. Present State of Andorran-EU Relations

• Customs Union (1990): Provides free movement of goods (excluding agriculture) and has a satisfactory function.
• Taxation of Savings Agreement (2004): Introduced a staged increase in withholding tax and returns most tax revenues to the saver's country of residence.
• Cooperation Agreement (2004): Covers areas like environment, education, and transport, but has seen limited operational results.
• Euro Adoption (2002): Andorra uses the euro, but no agreement exists for minting its own coins.
• Schengen Cooperation: Andorra is de facto part of the Schengen space, accepting Schengen visas and allowing free movement for its citizens.

4. Core Components of a Deep Andorran-EU Relationship

• Freedom of Goods Circulation: Already largely achieved.
• Freedom of Services Provision: Needs compliance with the EU Services Directive.
• Freedom of Movement of Workers and Persons: Requires liberalisation of professions and removal of residence quotas.
• Liberalisation of Capital Movements: Still restricted, especially for investments over 50% in key sectors.
• Fiscal Reforms: Aim to maintain low taxation while eliminating the tax haven label.
• Financial Sector Regulation: Must align with EU and international standards.

5. Complementary Components of Deep Integration

• EU Regional Policies: Participation in cross-border projects like the Communauté de Travail des Pyrénées (CTP).
• Transport Infrastructure: Development of roads, rail, and air links.
• Education and Research: Inclusion in EU education and research programmes.
• Justice and Internal Security: Cooperation with EU justice and security initiatives.
• Environmental Programmes: Participation in EU environmental policies.
• Political Dialogue: Institutionalised dialogue to support deeper integration.

6. Sequencing and Structuring the Relationship

• Stage 1: Unilateral reforms to prepare for integration.
• Stage 2: Sector-specific agreements with the EU.
• Stage 3: Comprehensive multi-sector treaty, similar to the EEA model.
• Stage 4: Virtual membership model, which would allow full functional participation without full EU membership.

7. The Possible and the Necessary

• Current Status: Andorra is in a mix of Stage 1 and 2.
• Need for Stage 3: To revitalise the economy and align with EU standards.
• Stage 4 Consideration: May be necessary in light of EU's reluctance to expand membership, but requires strong commitment from Andorra.

Key Information

• EU Neighbourhood Policy: Offers various models for cooperation, including EEA, Stabilisation and Association Agreements, and Enhanced Agreements.
• Switzerland and Liechtenstein Models: Serve as examples of deeper integration, though the EU opposes selective integration.
• Virtual Membership: An original model for Andorra, allowing participation in EU policies and institutions without full membership.
• San Marino Initiative: Has heightened interest in alternative EU statuses for micro-states.
• OECD and IMF Assessments: Highlight Andorra's status as an uncooperative tax haven and the need for regulatory improvements.

Conclusion

The report concludes that for Andorra to maintain and enhance its economic position, it must move from its current limited integration to a deeper relationship with the EU, based on the four freedoms and regulatory alignment. A structured approach, starting with unilateral reforms and progressing to comprehensive treaties, is necessary. The "Andorra-EU 2020" plan could serve as a framework for this transition, involving public consultations and a clear path to greater integration.