The European Commission has signed an Association Agreement with Andorra and San Marino, setting out a framework to bring both countries closer to the EU.
The agreement gives Andorra and San Marino access to the EU’s Internal Market — the bloc’s system for the free movement of goods, services, people and capital under common rules — under “fair competition conditions”, the Commission explained in a statement on Monday.
It said the deal is intended to provide “greater legal certainty and predictability” for citizens, businesses and public authorities, while also facilitating trade, supporting investment and encouraging cross-border economic activity.
The framework also covers dialogue and cooperation in areas including research and innovation, education, social policy, the environment, consumer protection, culture and regional cooperation.
Integration in financial services will happen gradually and subject to specific conditions, including an assessment of the strength of both partners’ regulatory and supervisory frameworks.
Updated monetary deals signed alongside agreement
The EU has also signed updated Monetary Agreements with Andorra and San Marino to address overlaps with the new Association Agreement and provide greater legal certainty, the Commission said.
Separate Monetary Agreements already govern the use of the euro and related obligations, and were signed in 2011 with Andorra and in 2012 with San Marino.
Following the signature, the Council of the EU will request the consent of the European Parliament before proceeding with the conclusion of the Association Agreement, the Commission said.
It added that the deal will be ready for provisional application once ratification procedures in Andorra and San Marino allow.
The Commission said further it was empowered to begin negotiations on an Association Agreement with Andorra, Monaco and San Marino in 2015, after negotiating directives were adopted by the Council in December 2014, and that talks with Monaco were suspended in September 2023.
Negotiations with Andorra and San Marino concluded in December 2023.
