Elections in Andorra: housing crisis and rapprochement with the EU on the menu

In this small state of 80.000 inhabitants, popular for its ski resorts and its zero-rated alcohol and cigarette shops, economic growth is sustained (13% in 2022, forecast of 4% for 2023). But discontent is growing among Andorrans, affected by a decline in purchasing power (7% inflation last year) and a surge in rents, in a context of real estate speculation.

In Andorra la Vella, the capital, it is now necessary to count 1.000 euros for a studio, while the minimum wage is 1.286 euros per month.

"Andorra has been experiencing a crisis since the war in Ukraine. The housing crisis affects individuals, but also companies which have difficulty finding seasonal workers to work", particularly in ski resorts, notes political scientist Yvan Lara.

Elected head of government in 2017, Xavier Espot, 43, is, according to another political scientist believes political scientist Yvan Lara, "in a favorable situation" to maintain a coalition in power for 12 years in this country, eager to conclude an agreement of association with Brussels, like Monaco and San Marino.

Right to vote

His main opponent is the Social Democratic Party (PS) candidate, Pere Lopez, a 51-year-old economist and former economy minister. He advocates the country's membership of the International Labor Organization (ILO) "to strengthen the rights of employees", and intends to "increase income tax from 10 to 15% for those who earn more than 155.000 euros per year".

If elected, he will facilitate access to citizenship - only 30.000 of the 80.000 inhabitants have the right to vote - by reducing from 20 to 10 years the number of years of residence required to obtain Andorran nationality.

For his part, the head of government, hailed for his management of the Covid crisis, promises "continuity, to "support the dynamics of economic growth, which will allow us to carry out social programs, particularly in housing". He also wishes "diversify the economy, because tourism is 40% of GDP".

Removed from the list of tax havens in 2009, Andorra is trying to attract wealthy people with an attractive tax policy.

Athletes, such as the French world champions Fabio Quartararo (motoGP) and Julian Alaphilippe (cycling), have been tempted by the calm of the principality and a corporate and income tax capped at 10%.

abortion, decriminalization

Andorra has a unique institutional particularity: it has at the top of the state two co-princes with an honorary role: the President of the French Republic and the Bishop of Urgell, a Spanish town close to the principality.

If the electoral campaign focused on economic and social issues, for the first time "abortion is a campaign issue, openly discussed. Before it was taboo", in a country which has a religious as co-head of State, observes Yvan Lara.

"Most parties are in favor of decriminalization, there is almost a consensus," he says. Without authorizing abortions on Andorran soil, in order to spare the Church, the main candidates are considering reinforced care.

Women wishing to have an abortion must currently travel to France or Spain by their own means.

A new party, Concordia, as well as Carine Montaner's Andorra Endavant (Andorre en avant) are also in the running for Sunday's election, during which 28 general councilors (deputies) will be elected. They will form the General Council, the principality's unicameral parliament. The results should be known overnight from Sunday to Monday.