Eusebi Nomen identifies investment funds as the biggest beneficiaries of the EU agreement

Businessman, former councillor and academic Eusebi Nomen believes the main economic benefit of the Association Agreement with the European Union for Andorra could go to investment funds, which would gain access to the European passport to operate in the single market.

Speaking on RTVA’s Avui serà un bon dia, Nomen said Andorra could not expect to compete with Luxembourg or Ireland, the major European fund management centres, but could develop small, specialised products.

He estimates that this activity could increase the amount of funds managed in the Principality by between €20 billion and €100 billion.

“Investment funds are a highly attractive activity and a priority for the growth of Andorra’s financial sector”, he said. Nomen added that this volume could potentially double the country’s financial activity.

Banks can already operate abroad

Nomen said several banking executives had told him the Association Agreement was not essential for banks, as the Monetary Agreement had already allowed them to open subsidiaries and operate outside Andorra.

By contrast, he said access to the European market for Andorran funds was one of the agreement’s specific attractions for the financial sector.

Xavier Cornella, an executive at Crèdit Andorrà, had already acknowledged in an interview that this opportunity was one of the reasons the agreement interested the bank.

Benefits concentrated in the financial sector

The potential growth of investment funds contrasts with the position of non-financial self-employed workers, other service providers and the primary sector, which would not have an equivalent European passport mechanism.

These activities would also have to compete with European operators that have been working under EU rules for decades.

Nomen questioned whether the agreement offered comparable benefits to other sectors. After describing the potential for investment funds, he summed up his assessment: “What else is it good for? Not much”.