Principality of Andorra

Principat d'Andorra Principality of Andorra


Motto Virtus Unita Fortior
Anthem El Gran Carlemany, Mon Pare
Location of Andorra

Capital	Andorra la Vella

Government	Constitutional monarchy and parliamentary democracy
Co-Prince
- From 2003	Joan Enric Vives Sicília
Co-Prince
- From 2007	Nicolas Sarkozy
Prime minister
- From 2009	Jaume Bartumeu Cassany

Legislature	General Council

History
- 1278	Paréage

Area	467.63 km²

Population
- 31 December 2009	84,082
Density	179.8/km²

GDP	31 December 2009 (PPP)
- Total	US$ 3.7 billion
- Per capita	US$ 44,900

Currency	Euro

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The Principality of Andorra is a co-principality and a parliamentary democracy in Southern Europe.

Background

For 715 years, from 1278 to 1993, Andorrans lived under a unique co-principality, ruled by French and Spanish leaders (from 1607 onward, the French chief of state and the Spanish bishop of Seu d'Urgell). In 1993, this feudal system was modified with the titular heads of state retained, but the government transformed into a parliamentary democracy. For decades Andorra enjoyed its status as a small refuge of fiscal and banking freedom and benefitted from Spanish and French tourists attracted to the country's duty-free shopping. The situation has changed in recent years as Andorra started to tax foreign investment and other sectors. Tourism accounts for over 80% of Andorra's gross domestic product.^[1]

Economy

Tourism, the mainstay of Andorra's tiny, well-to-do economy, accounts for more than 80% of GDP. An estimated 11 million tourists visit annually, attracted by Andorra's duty-free status for some products and by its summer and winter resorts. Andorra's comparative advantage eroded when the borders of neighboring France and Spain opened, providing broader availability of goods and lower tariffs. The banking sector, with its partial "tax haven" status, also contributes substantially to the economy. Agricultural production is limited - only 2% of the land is arable - and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing output consists mainly of cigarettes, cigars, and furniture. Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products.^[2]