Ten Years After Banking Secrecy Ended, Andorra Seeks a New Economic Model with the EU
46.4% of Andorrans surveyed say they would vote against the EU association agreement, compared with 33.5% who would support it
Ten years after the end of banking secrecy, Andorra is facing one of the biggest changes to its economic model in recent history.
Over the past decade, the country has gradually moved away from much of the system that for years defined its international image, built around banking secrecy and a distinctive tax framework.
Now, the Government of Xavier Espot is presenting the Association Agreement with the European Union as an opportunity to diversify the economy, access new markets and reduce dependence on traditional sectors such as tourism and retail.
However, the project remains far from achieving consensus among the population.
The latest survey by Andorra Recerca i Innovació puts the “No” at 46.4%, compared with 33.5% for “Yes”. Opposition therefore remains the leading position in the event of a referendum.
An agreement that goes far beyond opening the European market
The official narrative focuses on the opportunities Andorran companies will have to access the European internal market. However, that opening also requires a profound adaptation of the country to EU rules.
The agreement establishes that Andorra will participate in the internal market under common competition conditions and will apply European legislation in the areas covered by the pact.
The European Parliament itself describes the agreement as a step towards deeper economic and political integration. The text also contains 25 technical annexes covering the protocols for the associated states, including the European Union legislative acts that fall within their respective scopes.
For Andorra, the challenge is particularly significant given the size of the country and its economy. Andorran companies will have to compete within a European market of enormous scale and under common rules that have been developed over decades.
At the same time, the Principality will progressively have to incorporate a substantial part of the EU acquis affecting the sectors covered by the agreement. European documentation stresses that participation in the internal market will depend on continued compliance with the rules and principles governing it.
Greater integration also means greater obligations
The agreement is not limited to trade issues. It provides for participation in the four freedoms of the European internal market: the free movement of people, goods, services and capital.
Andorra will retain certain transitional measures and specific mechanisms linked to its small size, but the ultimate objective is to integrate the Principality into a much larger economic area.
In the financial sector, access to the internal market will not be immediate or automatic. It will depend on the effective adoption of EU legislation, the assessment of Andorra's regulatory and supervisory frameworks and compliance with the requirements established by the EU.
In this area, the process could take up to 15 years.
The “No” remains ahead of “Yes”
This scenario contrasts with the more optimistic narrative surrounding the agreement.
Although support has increased compared with the previous survey, rising from 24% to around 33.5%, 46.4% of respondents say they would vote against the agreement if the referendum were held today.
Furthermore, 45.7% consider Andorra's rapprochement with Europe to be negative, compared with 31.7% who view it positively.
The survey also reveals a significant information gap. More than 65% of respondents consider themselves poorly or not at all informed about the final negotiated text.
Thus, while the Government argues that the agreement could help Andorra overcome its traditional dependence on tourism, retail and other activities linked to the previous economic model, the domestic debate remains focused on what the Principality will have to give up in exchange for access to the European market.
Ten years after the end of banking secrecy
Andorra's economic transformation is not new. Over the past decade, the Principality has progressively moved away from much of the model that for years identified it internationally with banking secrecy and a distinctive tax system.
The EU agreement now proposes another major step: moving from a relationship based primarily on the customs union and various sectoral agreements towards much broader integration into the European internal market.
The Council of the European Union gave the text the green light on July 16, 2026, after Coreper determined that it is a mixed agreement, requiring the participation of all 27 EU member states in the signing and ratification process.
The next major chapter will now take place in Andorra. The agreement will have to overcome the referendum expected in the Principality before the ratification process can be completed.
Ten years after the end of banking secrecy, Andorra therefore finds itself facing a new crossroads: deepen its economic integration with Europe in search of a new growth model, or preserve greater autonomy from the rules of the European market.
