Freedom in the World 2004 - Andorra

Political Rights: 1
Civil Liberties: 1
Status: Free
Population: 100,000
GNI/Capita: $16,990
Life Expectancy: 0
Religious Groups: Roman Catholic (predominant)
Ethnic Groups: Spanish (43 percent), Andorran (33 percent), Portuguese (11 percent), French (7 percent) and other (6 percent)
Capital: Andorra la Vella

Overview

Efforts by the European Union and the OECD to introduce greater financial transparency in countries across the world threatened Andorra's status as a major tax haven in 2003. Over the year, Andorra was pressured to reform its restrictive nationalization criteria to accommodate its overwhelmingly foreign population.

As a co-principality, Andorra has been ruled jointly for 715 years by the president of France and the Spanish bishop of Urgel, who, as of May 12, was Monsignor Joan Enric Vives Sicilia. The 1993 constitution modified this feudal system, keeping the titular heads of state but transforming the government into a parliamentary democracy. Andorra became a member of the United Nations in 1993 and a member of the Council of Europe in 1994.

In March 2001, the country held elections and returned Marc Forne of the conservative Liberal Party of Andorra (PLA) to head the government. The PLA won an absolute majority with 15 out of the 28 seats in the Consell General, while the Andorran Democratic Center Party (ADCP, formerly the Democratic Party) won 5 seats, the Socialist party (PS) captured 6 seats, and the Unio Laurediana party won 2 seats.

A new European Union (EU) directive passed early in 2003 threatens Andorra's status as a major tax haven. All EU member countries are now required either to exchange information on savings accounts held by noncitizens or to levy a withholding tax on such accounts. As other tax havens have agreed to the EU's directives, it is assumed that Andorra will also fall in line.

The European Commission against Racism and Intolerance (ECRI) criticized Andorra in its 2003 report on the country for having restrictive naturalization criteria. Despite the fact that a majority of those living in Andorra are noncitizens, a person can become a citizen only by marrying an Andorran or by residing in the country for more than 25 years. Although noncitizens receive most of the social and economic benefits of citizens, they lack the right to participate in national politics.

Tourism is the mainstay of the economy and accounts for 90 percent of its gross domestic product. Because of the country's banking secrecy laws and tax haven status, the financial sector is also important. However, the threat of economic sanctions from the EU, which has been trying to introduce greater transparency into the financial sector in Europe, and the OECD, which has blacklisted Andorra for being an "uncooperative tax-haven," minimizes the appeal of this country for investors. In 1991, Andorra established a customs union with the EU that permits free movement of industrial goods. It also adopted the euro, despite the fact that it is not a member of the EU.

The United Nations Security Council named Andorra as one of 58 countries that had failed to meet an October 31 deadline to submit reports on measures to combat terrorist activities.

Political Rights and Civil Liberties

Andorrans can change their government democratically and do so enthusiastically. More than 80 percent of eligible voters participated in elections in 2001 to choose the members of the Consell General, which then selects the Executive Council President, who is the head of government. Popular elections to the 28-member parliament are held every four years. Fourteen members are chosen in two-seat constituencies known as "parishes," and fourteen are chosen by a national system of proportional representation. The people have a right to establish and join different political parties, and an opposition vote does exist. However, more than 65 percent of the population consists of noncitizens, who have no right to vote and face a number of hurdles that bar them from becoming citizens. As a result, there is little participation by non-Andorrans in government and politics.

Due to a lack of available information, Transparency International did not review and rank Andorra in its 2003 Corruption Perceptions index.

Freedom of speech and religion are respected across the country. There are two independent daily newspapers (Diari d'Andorra and El Peridico de Andorra), access to broadcasts from neighboring France and Spain, and unlimited Internet access. Although Catholicism is the predominant religion (90 percent of the whole population) and the constitution recognizes a special relationship with the Roman Catholic Church, the state has ceased providing the Church with subsidies. According to the ECRI, Andorran authorities have begun to respond to the needs of smaller religious groups, such as Jews, Hindus, and Muslims. However, there is a degree of concern about the lack of a proper mosque for the Muslim community. The country's academic system remains free.

The government generally respect freedom of assembly and association. Although the government recognizes that both "workers and employers have the right to defend their own economic and social interests," there is neither an explicit right to strike nor legislation penalizing antiunion discrimination. Some advances in labor rights, however, were made with the creation of a registry of labor associations in late 2001.

Andorra's judicial system, which is based on Spanish and French civil codes, does not have the power of judicial review of legislative acts. The country has not accepted compulsory International Commission of Jurists jurisdiction.

Immigrant workers, primarily from North Africa, complain that they lack the same rights as citizens. An immigration law in 2002 attempted to remedy the situation by granting legal status to 7,000 immigrants who lacked work permits or resident permits.

Citizens have a right to own property, but noncitizens can own only a 33 percent share of a company unless they have lived in the country for 20 years or more. A law to reduce this to 10 years is pending in parliament.

Women enjoy the same legal, political, social, and professional rights as men, although they are underrepresented in government. Today only four women occupy seats in parliament. Moreover, there are no specific laws addressing violence against women, which remains a problem across the country.