The European Commission has taken a significant step forward today by adopting proposals for Council decisions regarding the signing and provisional application, as well as the conclusion,

of the Association Agreement between the European Union and Andorra and San Marino, respectively. This marks a pivotal moment in the EU's efforts to foster a special relationship with its neighboring countries, representing a key milestone towards the ratification of the agreement.

The Association Agreement aims to facilitate the participation of Andorra and San Marino in the EU's internal market and to enhance cooperation across various policy areas. It will grant these countries access to the internal market on terms akin to those enjoyed by Norway, Iceland, and Liechtenstein under the European Economic Area Agreement. This move underscores the mutual aspiration of Andorra, San Marino, and the EU to strengthen their ties.

Key elements of the Association Agreement include:

-Participation in a unified extended internal market under fair competition conditions and adherence to common rules.

-Progressive access to the internal market in financial services, contingent upon successful audits of the robustness of the regulatory and supervisory frameworks of the associated states, with the European Supervisory Authorities playing a pivotal role in this process.

-Establishment of a framework for dialogue and cooperation in various areas of mutual interest, such as research and development, education, social policy, environment, consumer protection, culture, and regional cooperation.

Implementation of a coherent and efficient institutional framework, ensuring consistent interpretation and application of the Association Agreement in line with the European Court of Justice's case-law, along with a dispute settlement mechanism with the European Court of Justice as the final arbiter for disputes.

The Association Agreement takes into account the unique circumstances and specificities of Andorra and San Marino, including their proximity to neighboring EU member states and their population size. As such, it includes several adjustments and transitional periods for the implementation and application of EU regulations.

Next Steps:

Following approval from the Council, the EU, Andorra, and San Marino can proceed to sign the Association Agreement, after which it will be presented to the European Parliament for consent. Upon receiving consent from the Parliament, the Council can finalize the agreement's conclusion. Subsequently, once Andorra and San Marino complete their respective ratification procedures, the Association Agreement will enter into force.

Background:

Negotiations for an Association Agreement with Andorra, Monaco, and San Marino were authorized by the General Affairs Council on December 16, 2014. The Commission took charge of these negotiations in January 2022. Significant progress was made during the negotiating process, with the conclusion of negotiations at the negotiators' level reached in December 2023, following 49 negotiating sessions held between March 2022 and December 2023. Photo by Eponimm, Wikimedia commons.