The Principality of Andorra has always maintained an excellent relationship with neighboring countries, especially with the closest territories. But, despite this proximity, despite sharing a fundamental element of our identity such as language, there are still many aspects of the Andorran reality that are not always sufficiently well known and that -possibly- have been eclipsed by clichés or labels that it has taken us many years to demystify.
On May 9, I was re-elected head of the Government of Andorra, after the victory by an absolute majority of Democrats in the general elections in April. A victory that allows us to continue developing policies to strengthen and unite our economic and social model and to face great challenges such as the fight against climate change, the energy transition, sustainable urban growth, the lack of affordable housing or economic diversification . Challenges with an obvious social and economic dimension that will be decisive for the coming years.
The rapid recovery of our economy, after the covid-19 pandemic, has allowed us to position ourselves as the second fastest growing economy in Europe, improve the rating of rating agencies and the financial market and be one of the countries with one of the lowest unemployment rates. But this bonanza, which we face with a certain dose of optimism and also prudence, is not the result of a single day, but the result of enormous effort and work, both from public institutions and from the private sectors, and which has lasted for more than one of each. An effort and work that have made it possible to standardize the Andorran tax system -maintaining competitiveness- with the endorsement of the OECD, sign seventeen agreements for non-double taxation and the prevention of tax evasion and avoidance to this day, enter the International Monetary Fund or complete the process of economic opening, and which, at the same time, has consolidated us as a serious and committed actor to negotiate an Association Agreement with the European Union.
The figures associated with the tourism sector in the last twelve months have reached record levels, which clearly shows that our country continues to be an attractive destination. The positive dynamics of tourist activity, which has traditionally been and is one of the engines of our growth, has not hindered us from promoting policies that promote Andorran economic diversification in terms of innovation and sustainability and reflecting on the environmental implications that it has our way of doing and living.
From this perspective, Andorra has carried out in the last four years -particularly after the health crisis- an unprecedented legislative and regulatory deployment, to promote a favorable business climate, to encourage the appearance of new opportunity niches and new models of business based on new technologies, to attract digital nomads, to promote a new economy based on scientific research and technological innovation, to encourage the landing of companies related to electronic sports and to move towards digital transformation. In short, to attract emerging sectors that help us to diversify our economic model, to move towards modernity taking into account that we have one of the best health and education systems and high levels of citizen security.
One of the key pieces of this process to achieve a more plural, diverse and solid economy is the fit of the Principality of Andorra with the European Union to establish equivalence between the Andorran and European legal frameworks, and thus encourage the creation of new sectors economic and internationalization of those that already exist. Negotiations for the Association Agreement, which we began in 2015, are expected to culminate by the end of the year, with a text agreed between the parties that will allow Andorra's structured and progressive participation in the European internal market, respecting the specificities of our country in foreign, immigration or fiscal policy.
Four intense years await us to meet the challenges faced by a microstate like Andorra, which has managed to maintain its identity and political stability over the years through historical institutions such as the Co-Principality, the General Council or the communes. But it is also true that shared challenges await us with the countries and territories around us, because each country has its own configuration, an identity and a unique reality; even so, beyond the enormous differences, almost all of us have common challenges associated with sustainable growth, adaptation to climate change and the energy transition or policies to promote social cohesion or effective equality between women and men.
In this sense, Andorra is fully committed to contributing with its humble but exemplary voice to successfully overcome these shared challenges.
