After World War II, the Principality of
Andorra entered a period of strong economic growth. From
1970, women, people between the ages of 21 and 25, and
second-generation Andorran were also granted the right
to vote. In 1985, the voting age was lowered to 18 and
applied to all native Andorran.
List of most commonly used acronyms containing Andorra. Also includes historical, economical and political aspects of the country.
A political reform was implemented in 1981, when a
government was created. The Principal's first head of
government was Oscar Ribas Reig. In 1990, he appointed a
commission with the task of drafting a new constitution
that would lead to independence. In a 1993 referendum,
74 percent of Andorans supported the new constitution.
The Principality of Andorra thus became a sovereign
state. Political parties and trade unions were allowed,
an independent judiciary was established and the country
was given the right to conduct its own foreign policy.
In the general elections held in December 1993, five
parties were elected to Parliament, but none of them got
their own majority. Oscar Ribas Reig's National
Democratic Group, which received the most votes, formed
government with the support of New Democracy (Nova
DemocrÓcia) and a smaller party. In 1994, Reig lost a
vote of confidence in the General Council and a minority
government was formed by Liberal Union leader Marc FornÚ
MolnÚ with the support of a few smaller parties. FornÚ
MolnÚ retained government power even after the 1997
elections, when the Liberal Union gained its own
majority in parliament.
In 2000, the National Democratic Group split into two
parties, the Left Liberal Social Democratic Party and
the Middle Party Democratic Party.
Scandal about waste incineration
In the 2001 parliamentary elections, the ruling
party, which then changed its name to Andorra's Liberal
Party (PLA), again got its own majority. FornÚ MolnÚ
re-formed government, and in the fall of 2002, it went
through its worst crisis during the eight years in
power. In October, the government unexpectedly closed a
waste incinerator a few miles from the capital after it
was revealed that the plant released a thousand times as
much dioxin as was permitted by EU rules. Spain offered
to temporarily take care of the garbage of the
Principality, but the government decided to build a new
incinerator. The action led to protests from opposition
politicians, environmental groups and the public. The
government received harsh criticism for its
environmental policy and for lack of information about
the environmental and health risks associated with waste
incineration. Accusations of corruption also occurred.
In the 2005 parliamentary elections, PLA lost its own
majority. As the largest party, with 41 percent of the
vote and half of the 28 seats in Parliament, the
Liberals could still form a new government. According to
the constitution, party leader FornÚ MolnÚ could not
remain as head of government. He was succeeded in both
positions by Albert Pintat SantolÓria, former Foreign
Minister. In the elections, the Social Democrats
increased sharply to 38 percent, mainly at the expense
of the central party Andorra's Democratic Center Party (CDA),
which gained 11 percent.
The Pintat government worked to remove Andorra's
stamp as a tax haven. The creation of a more versatile
economy, with a reduced dependence on the financial
sector, has been an important issue since independence
in 1993. In recent years, Andorra has also been
pressured by the OECD Economic Cooperation Organization
to change the rules of confidentiality for banks and
The government also implemented other major changes
in the economic field. Among other things, corporate tax
would be introduced and the rules for foreign
shareholding changed to increase foreign investment (see
Six parties ran in the parliamentary elections in
April 2009. One of the most important questions during
the election campaign was whether a tax reform needed to
be removed from the OECD's black list of tax havens. The
differences between the parties mainly concerned the
pace of reform.
The election seemed to mean the end of PLA's 15-year
domination in parliament, when the party stepped back
sharply. The Social Democrats became the largest party
with 45 percent of the votes and half of the seats. The
newly formed Reformist coalition (Coaliciˇ Reformista,
CR), led by the ruling PLA, gained 32 percent, and
Andorra for change (Andorra pel Canvi, APC) received
just under 19 percent. The turnout was just over 75
After a first vote when Parliament could not agree,
Social Democrat Jaume Bartumeu was appointed new head of
government in June.
Changes in the tax system
The Social Democrats had previously promised radical
changes to the tax system, including through the
introduction of income tax, corporation tax and VAT.
They also wanted to speed up legislation to reduce bank
secrecy in order to remove Andorra from the OECD's black
list of tax havens. The new government also had to try
to address the economic problems as unemployment
increased and the tourism industry experienced
difficulties in the wake of the global financial crisis.
But with only half of the mandate, Bartumeu lacked a
majority in the General Council and he found it
difficult to push through his politics. He had to
negotiate with other parties, but it was difficult when
the right parties opposed the proposal on income tax.
The opposition blocked the budget for 2010, and when it
was clear in February 2011 that this year's budget would
also not go through, Bartumeu announced the new election
until April 2011.