<h6><strong>Juan David Latorre</strong></h6> <h4><strong>"Our bilateral relationship is with the Spanish government, respecting the Constitution, although we have a very good relationship now with the president of the Generalitat of Catalonia, Salvador Illa, and we had with his predecessors," said the head of the Andorran government, Xavier Espot, in a meeting he held with a dozen ambassadors and members of the business and economic sector from Spain.</strong></h4> The head of the Andorran government referred to the year 1993, when its Constitution was approved, as <strong>"a turning point for the modernization of the country and for the possession of sovereignty by the people".</strong> "Andorra is a small country, said Xavier Espot, with <strong>87,097 inhabitants,</strong> a solid economy with <strong>2.6% of GDP in 2024,</strong> above the euro zone, Spain, Germany or France. It has sound finances, with 9.6 million euros from tourists who visited our country last year, and there is no unemployment. We have come to this because of <strong>our ability to adapt,</strong> <strong>resilience and courageous and clear decisions.</strong> Our debt is about 33% of GDP. Therefore, I believe it is a positive management, recognized by the International Monetary Fund." With regard to capital investment in the South African country, the head of government pointed out that the tax reforms carried out and, above all, "with the amendment of the Foreign Investment Act of 2012, <strong>foreign capital has increased in virtually all sectors from 49 to 100%, </strong>with sustained growth in the last decade due, among other things, the full rights of new residents from the first day of their stay in Andorra". Xavier Espot highlighted the security in his country. "We are, he said, the first or second safest country in the world, with good health care, quality public and private education and excellent communications with direct flights to Toulouse, Barcelona, Mallorca and Madrid." As for the challenges facing the country, he noted that the main ones "as in many countries, are the <strong>diversification of the economy,</strong> the centralization process which leads <strong>to worse access to housing and a high cost of living.</strong> And from an international point of view, the <strong>energy transition, the fight against climate change</strong> <strong>or</strong> <strong>the digitisation of the public sector.</strong> In the coming weeks, a law will be adopted that will allow to increase the offer of affordable rent, also record the foreign real estate investment with a corrective tax according to the properties acquired". Referring to the relationship of Andorra with the European Union, Xabier Espot pointed out that since 1990, when the Customs Agreement was signed with the EU, "more agreements have been signed, which has resulted in <strong>a very close and diverse relationship</strong> with it. In 2023 the <strong>Association Agreement with the EU</strong> was closed, which is in the approval period of the Council of Europe. Andorra can be an economic engine for the region. Andorra is moving steadily, without pause and in a hurry, in a global world based on <strong>the principles of transparency, equivalence, equity and resilience.</strong> In order for Andorra to remain what it is, the Association Agreement with the European Union is necessary, so as not to lose the status quo of the Andorran population. <strong>There is no alternative to our approach to Europe".</strong> Finally, as for tourism, the head of the Government of Andorra stressed the "aspiration that it is not only for the ski season when visiting the country, but also in the spring or summer".
