Commission proposes Association Agreement with Andorra and San Marino to the Council

The Commission has today adopted proposals for Council decisions on the signing and provisional application, as well as on the conclusion of the Association Agreement between the EU and Andorra and San Marino, respectively. This represents a key step towards the ratification of the agreement, while marking a significant milestone in EU efforts to develop a special relationship with neighbouring countries.

The Association Agreement will allow Andorra and San Marino to participate in the EU’s internal market and enhance cooperation in other policy areas. Their access to the internal market will become comparable to that enjoyed by Norway, Iceland and Liechtenstein under the Agreement on the European Economic Area. Ultimately, this responds to the two countries’ ambition in building closer relations with the EU.

The Association Agreement is based on the following key elements:

> It provides for the participation of the two countries in a homogenous extended internal market under equal conditions of competition and respect of the same rules.

> Access to the internal market in financial services will be progressive and will depend on a successful audit of the robustness of the associated States’ regulatory and supervisory frameworks. The European Supervisory Authorities will play a central role in the auditing process.

> The Association Agreement establishes a framework to develop and promote dialogue and cooperation in areas of common interest, such as research and development, education, social policy, the environment, consumer protection, culture or regional cooperation.

> It introduces a coherent, effective, and efficient institutional framework, including:
–the consistent interpretation and application of the Association Agreement in line with the case-law of the European Court of Justice; and
— a dispute settlement mechanism with the European Court of Justice as the ultimate arbiter for disputes on the interpretation and application of the Association Agreement.

> In line with the 2014 negotiating directives, the Association Agreement takes into account the particular situation of Andorra and San Marino as well as their specificities, arising from their relations of proximity with their neighbouring EU Member States, their size, including that of their populations. This is reflected in a number of adjustments as well as in several transitional periods for the implementation and application of parts of the EU acquis.

Next Steps

Once the Council gives its green light, the EU, Andorra and San Marino can sign the Association Agreement and then pass it to the European Parliament for consent. After the consent by the European Parliament, the Council can adopt a decision on its conclusion. Once Andorra and San Marino have also completed their ratification procedures, the Association Agreement can enter into force.  

Background

On 16 December 2014, the General Affairs Council authorised the opening of negotiations for an Association Agreement with Andorra, Monaco and San Marino. The Commission took over the responsibility of these negotiations in January 2022.

In its conclusions adopted in June 2022, the Council called on the Commission to finalise the negotiations by the end of 2023. Between March 2022 and December 2023, 49 negotiating sessions were held and significant progress was made, leading to the conclusions of negotiations at negotiators level in December 2023.

Compliments of the European Commission.