Brussels:The European Commission has signed an Association Agreement with Andorra and San Marino, marking a significant step towards deeper economic and institutional integration with the European Union. This agreement establishes a comprehensive framework that provides both countries access to the EU's Internal Market under common rules and fair competition conditions.

According to Cyprus News Agency, the agreement aims to enhance legal certainty and predictability for citizens, businesses, and public authorities, while facilitating trade, supporting investment, and encouraging cross-border economic activity. It also includes provisions for dialogue and cooperation in several areas of shared interest such as research and innovation, education, social policy, the environment, consumer protection, culture, and regional cooperation.

In terms of financial services, integration will occur gradually and be contingent upon specific conditions, including evaluations of the regulatory and supervisory frameworks of both Andorra and San Marino. Updated Monetary Agreements were also signed to address overlaps with the new Association Agreement, providing greater legal certainty.

Following the signing, the European Parliament's consent will be sought to conclude the agreement, which will be ready for provisional application once ratification procedures in both countries are completed. Negotiations initially started in 2015 but continued exclusively with Andorra and San Marino after talks with Monaco were suspended in September 2023. The agreements reached in 2023 and subsequent approvals signify the EU's commitment to strengthening ties with these microstates.