Andorra and San Marino sign an Association Agreement to bring them closer to the EU

The Commission has signed an Association Agreement with Andorra and San Marino, bringing both countries closer to the EU and establishing a clear and comprehensive framework for deeper economic and institutional integration. 

The Agreement grants Andorra and San Marino access to the Internal Market under common rules and conditions of fair competition. It provides citizens, businesses and public authorities with greater legal certainty and predictability, facilitates trade, supports investment and promotes cross-border economic activity, whilst respecting the specific characteristics of both partners. 

It also establishes a framework for dialogue and cooperation in areas of common interest, such as research and innovation, education, social policy, the environment, consumer protection, culture and regional cooperation.  

In the financial services sector, integration will take place gradually and subject to specific conditions. This will include an assessment of the soundness of the regulatory and supervisory frameworks of both partners. 

The EU also signed updated monetary agreements with Andorra and San Marino to address overlaps with the new Association Agreement and provide greater legal certainty.  

Next steps 

Following the signing, the Council will seek the consent of the European Parliament before proceeding to conclude the Agreement. It will be ready for provisional application as soon as the respective ratification procedures in Andorra and San Marino allow. 

Background 

The negotiating directives adopted by the Council in December 2014 authorised the Commission to open negotiations on an Association Agreement with Andorra, Monaco and San Marino in 2015. Following the suspension of negotiations with Monaco in September 2023, negotiations with Andorra and San Marino continued and were successfully concluded in December 2023.  

On 26 April 2024, the Commission submitted proposals for the Council to decide on the signing, provisional application and conclusion of the Agreement. In July 2026, the Council authorised its signing and provisional application. 

Separate monetary agreements governing the use of the euro and related obligations are already in place. These were signed in 2011 with Andorra and in 2012 with San Marino. In December 2025, the Council authorised the Commission to negotiate amendments to those monetary agreements in order to resolve any inconsistencies between their obligations and those arising from the new Association Agreement. The Commission approved the amendments for signature in September 2026.