On 19 October, the European Commission formalised an Association Agreement with Andorra and San Marino, strengthening their ties to the European Union and establishing a clear, comprehensive framework for enhanced economic and institutional collaboration. This Agreement grants Andorra and San Marino access to the Internal Market under harmonised rules and fair competition conditions.
“By signing this Association Agreement, we open a new chapter of deeper partnership between the European Union and Andorra and San Marino. It sends a clear signal that, at a time of geopolitical uncertainty and growing fragmentation, our answer is not isolation but partnership. By bringing our economies and societies closer together, this Agreement will strengthen our collective resilience, bringing greater stability, predictability and opportunity,” said Maroš Šefčovič, Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency.
The Agreement aims to increase legal certainty and predictability for citizens, businesses, and public authorities, while facilitating trade, promoting investment, and encouraging cross-border economic activity. Importantly, it also respects each partner’s distinct characteristics.
Furthermore, the Agreement outlines a framework for dialogue and cooperation in various areas of mutual interest, including research and innovation, education, social policy, environmental protection, consumer rights, culture, and regional cooperation. The EU will gradually integrate financial services, subject to specific conditions, including evaluations of the robustness of each partner’s regulatory and supervisory frameworks.
In addition, the EU has signed updated Monetary Agreements with both Andorra and San Marino to clarify any overlaps with the new Association Agreement and to ensure greater legal certainty. After signing, the Council will seek the European Parliament’s consent before finalising the Agreement. It will be ready for provisional application once Andorra and San Marino complete their respective ratification processes.
“Today marks another step forward in the European Union’s close and long-standing relations with Andorra and San Marino. The amendments to the Monetary Agreements are part of a wider trust-based journey. They will ensure legal clarity, consistency and coherence, reflecting a mature partnership built on sound governance that brings concrete benefits to our constituencies. The EU remains committed to working closely with both partners in the years ahead,” emphasised Valdis Dombrovskis, Commissioner for Economy and Productivity; Implementation and Simplification.
In December 2014, the Council empowered the Commission to negotiate an Association Agreement with Andorra, Monaco, and San Marino. Negotiations continued with Andorra and San Marino after the Council suspended Monaco in September 2023, and concluded in December 2023.
The Commission proposed signing the Agreement on 26 April 2024, and the Council approved it in July 2026. The Commission also amended existing Monetary Agreements with Andorra and San Marino to address overlaps, and the Council approved the amendments in September 2026.
