Marc Forné Molné ANDORRA

Executive Council President
(pronounced “MARK for-NAY mol-NAY”)
“Institutions are the pillars of our community: a democratic parliamentary system that began in
1419, and a culture of peace which has continued uninterrupted since 1278.”
The Principality of Andorra, despite its name, has been a
constitutional republic since 1993. It is a landlocked state
between Spain and France, and its culture, economy, and
political life reflect the influence of those two neighboring
countries. One of the smallest countries in the world,
Andorra has only 468 sq km (181 sq mi) of territory, making
it slightly more than twice the size of Washington, D.C. The
capital city is Andorra la Vella. Andorra’s population was
estimated at 68,403 in July 2002, with a growth rate of
approximately 1.1%. Only about 30% of the population are
Andorran citizens. More than 60% of its inhabitants are
Spaniards and most of the rest are French nationals. Its large
foreign population is comprised of migrant laborers seeking
employment in its tourist industry and light manufacturing
companies, and of wealthy individuals residing in Andorra
because of its status as a tax haven. Historically, Andorra
used both the Spanish peseta and the French franc as official
currencies, but all three nations adopted the euro in 2002.
Catalan, spoken primarily in northeastern Spain, is the
official language, but most residents speak French and
Spanish as well. Ethnically, Andorran citizens are indistinguishable
from their French and Spanish neighbors. The
population is overwhelmingly Roman Catholic. There is no
state religion in Andorra and the Constitution explicitly
permits all faiths. Andorra produces raw tobacco, cigarettes,
and cigars, but its economy is built around tourism and a
growing banking industry.
POLITICAL BACKGROUND
Andorra has been considered a state since the 13th century,
but only recently has its population attained a large measure
of control over the country’s affairs. Archaeological evidence
indicates that Andorra’s mountain valleys were inhabited as
early as 4000 BC. During the early Christian era, the Romans
encouraged resident tribes to surrender their nomadic life and
form settlements there.
In 1278, the French count of Foix and the Spanish bishop
of Urgel became the “co-princes” of the country, granting
Andorra nominal independence but retaining authority over
its foreign contacts and trade. For centuries, Andorra was an
anomaly among states. Councils of Andorrans exercised an
element of self-expression; at the same time, ultimate
authority rested in the hands of the co-princes. The state was
therefore neither a principality nor a republic.
France and Spain ultimately spurred the Andorrans to
assume greater responsibility over their own affairs and to
move towards more democratic practices. For most of
Andorra’s history, there was no functioning executive office
within the government. Local councils and a national legislative
body provided day-to-day governing authority. Until
1970, the vote was given only to males who were from
families that had lived in Andorra for at least three generations.
In that year, women obtained the vote. Few foreigners
were allowed to gain citizenship. The Andorrans permitted
no political parties and no labor unions. In 1975, the Spanish
dictator Francisco Franco died and Spain embraced
democracy. From that moment, Spain, together with France,
encouraged reform in Andorra. In 1981, an institution with
vague executive powers was created, but efforts to codify a
coherent body of law and a constitution failed. In 1993,
Andorrans declared their independence. A Constitution gave
Andorra sovereignty over most of its domestic affairs, trade,
and general foreign policy.
France and Spain, however, continue to guide important
aspects of life in Andorra. French and Spanish officials
oversee Andorra’s judicial system. Appeals to an ultimate
court of jurisdiction are heard in courts in either France or
Spain. Andorra has a small army comprised of males who
own firearms. They have not been engaged in a conflict for
over 700 years and today their duties are largely ceremonial.
France and Spain maintain responsibility for Andorran
defense policy.
The growing foreign population has provided much of the
capital for Andorra’s economy. By the 1970s, foreign
nationals began to seek a greater definition of their rights,
including eligibility for citizenship and the right to organize.
Andorrans, a minority in their own country, had traditionally
sought to limit foreigners’ rights. The Constitution is a
compromise in that it recognizes foreigners’ aspirations by
opening the door to citizenship but preserves political power
in the hands of the indigenous population. Political parties
and unions are now legal. Andorran families of long standing
dominate political life. Foreigners may gain citizenship after
30 years of residency or if they have lived in the country since
before 1975. Conservative Roman Catholic traditions are
strong in Andorra. Although women may vote, few have
succeeded in politics or business.
The Executive Council president is chosen by the General
Council, which has 28 members and is elected every four
years by a direct vote of all citizens over 18. The Executive
Council president appoints the cabinet, but the General
Council may bring down the government at any time by a
majority vote. These practices resemble a parliamentary
system, with the Executive Council president and the cabinet
functioning as the executive branch and the General Council
as the legislature. The most important cabinet offices are
foreign affairs, finance, the economy, and justice.
Power is fragmented among several parties. In the legislative
elections of 4 March 2001, more than 80% of eligible
voters cast ballots. The Liberal Party of Andorra (Partit
Liberal Andorra—PLA), a center-right party, won 16 seats on
the General Council; the center-left National Democratic
Group (Agrupament Nacional Democratic—AND) won six
seats. Three smaller parties—New Democracy (Nova Democracia—
ND), the National Democratic Initiative (Initiativa
Democratic Nacional—IDN), and the Union of Ordino
People (Unio Parroquial d’Ordino—UPO)—each won seats.
In 2001, the PLA formed a government for the third time (the
previous times were 1994 and 1997), again under Marc
Forné Molné.
PERSONAL BACKGROUND
Marc Forné Molné became Executive Council president in
1994 when the General Council removed Oscar Ribas Reig
on a vote of confidence motion. Forné (the custom in
Andorra is to use the second name as the last name) was born
on 30 December 1946, in La Massana. He received his
education at the University of Barcelona, Spain. He was
trained as an attorney and worked in his family law firm from
1974–94, where he practiced criminal and real estate law. He
also served as editor of a magazine for 11 years. Like most
Andorrans, Forné is a practicing Roman Catholic. He has
been active in Andorran political life since the 1970s, but
restrictions on political organization meant that he and other
political figures in Andorra kept a low profile until the
passage of the Constitution in 1993. In that year he founded
the Liberal Union Party, later renamed the Liberal Party of
Andorra (PLA). He was elected to Parliament in 1993 and a
year later became head of government.
RISE TO POWER
The government of Oscar Ribas fell because he was exploring
the possibility of instituting a broader system of taxation in
order to combat a growing budget deficit. By a vote of 20 to
eight, the General Council removed his government on 25
November 1994; only the members of his own party voted
for him. Forné was chosen to replace him because he was
viewed as a well-educated moderate who would continue
reform, but at a slower pace. Forné assumed power on 21
December 1994. Forné remained Executive Council president
following the 1997 and 2001 elections when his party won
the majority of seats in the General Council.
LEADERSHIP
Forné believes that for Andorra’s prosperity to continue, the
country must gradually become more engaged in the outside
world. Forné opposed Ribas’s efforts to institute broader
taxation and instead has concentrated on strengthening
Andorra’s links to the outside world in order to attract trade
and investment. His leadership is evident in several steps
taken shortly after he rose to power. In 1995, he attended
meetings of the United Nations (UN) in New York and used
the occasion to hold discussions with a number of current
and future potential trading partners. In 1996, Forné’s
government took a firm stand on a key international issue by
signing the Non-Proliferation Treaty. Signatories of this treaty
do not possess chemical, nuclear, or biological weapons and
pledge not to obtain them in the future. The treaty could
prove to be an important step in the effort to stem the sale
and development of weapons of mass destruction in the
aftermath of the Cold War. The Forné government is expected
to continue to support positions in the security field that
promote peaceful relations among nations.
DOMESTIC POLICY
Andorrans had traditionally pursued agriculture to make
their living. While sheep are still raised and the traditional
crops of tobacco and potatoes are still sown, Andorra’s
livelihood now depends upon tourism and an emerging
service industry of financial institutions. Domestic policy,
therefore, centers upon efforts to assure that outside guests
and capital continue to flow into the country. There is no
income tax in Andorra, a tradition that has attracted wealthy
residents who live in the country and, in some cases, establish
financial institutions such as banks and insurance companies.
Andorra has tight banking secrecy laws to encourage the
continued presence of such institutions. The U.S. government
and several European governments have expressed concern
that such laws encourage money laundering and the
investment of illegally gained capital in Andorra.
Raising revenue has become an important problem for
Andorra’s government. Because large numbers of foreign
laborers have been necessary to build Andorra’s many hotels
and restaurants, there has been a need to construct housing,
hospitals, and schools for these laborers and their families. In
addition, it has been necessary to improve roads, lay sewer
F R A N C E
S P A I N
A N D O R R A
Soldeu
Santa
Coloma
Arcabell
Anyos
Llorts
Pal
Farga
de Moles
Pas de
la Casa
Arinsal
El Serrat
Sant Juliá
de Lòria
Les
Escaldes
Encamp
Ordino
La Massána
Andorra
la Vella
Valira
Valira d'Orient
Valira del Nord
Os
Estany
d'Engolaster
ANDORRA
0 10 Miles 0 2 4 6 8 10 Kilometers 2 4 6 8
lines, and undertake a range of other tasks endemic in
countries experiencing rapid growth—and to accomplish
such efforts without an income tax. Some steps have been
taken to keep the Andorran treasury at least partly filled.
Foreigners must pay an annual levy in order to maintain the
right to stay in the country. This annual levy provides funds
for a substantial part of the country’s budget. A small import
tax on the large amount of consumer goods brought into the
country for sale to visitors also supplies revenue for the
country’s treasury. The only tax on the individual Andorran
citizen is a modest fee collected for telephone and electricity
use. The Andorran government has run a deficit since the
early 1990s and methods short of an income tax are being
considered to raise further revenues.
FOREIGN POLICY
Andorra has no armed forces trained for combat and its
defense policy is handled by France and Spain. In part
because it is landlocked between two large, powerful
neighbors with which it is on good terms, Andorra has no
apparent need for armed forces and defense arrangements
beyond the protection or assistance that France and Spain
provide.
From the mid-1980s, France and Spain attempted to
nudge Andorra not only towards independence and
democracy, but into firmer contacts with the outside world.
To some extent, this effort by Andorra’s neighbors was
economically based: citizens from France and Spain sought
greater certainty from their Andorran hosts when applying
for work or residence permits. Politically, Paris and Madrid
wished to see these workers gain rights of representation,
something that was not allowed until a constitution guaranteeing
such rights could be adopted. Independence in March
1993 was quickly followed by openings to the outside world
and the establishment of civil and political norms common in
European democracies. In July 1993, Andorra joined the UN.
It has established diplomatic and trade relations with a
number of countries, such as China, Cuba, South Korea, and
Indonesia, from which it imports raw materials or finished
goods for resale to foreign visitors. Although it has diplomatic
relations with these countries, it has no diplomatic
representation except in Paris, Madrid, and New York, at the
UN. Andorra’s ambassador to the UN is also its ambassador
to the United States. As a further step towards marking its
place as an independent, democratic state, in October 1994 it
joined the Council of Europe, an international institution that
sets standards for human and civil rights.
The Spanish and French governments have encouraged
Andorra to take advantage of the European Union’s (EU) free
trade regulations by developing export industries. Through
an agreement with the EU, Andorra obtained the right to
export to EU countries with minimal tariffs on its goods.
Tension between the countries of the EU and Andorra
developed during the 1990s because of growing evidence of
widespread cigarette smuggling through Andorra. In the late
1990s, European nations estimated that they were losing
about €400 million (us$428 million) in tax revenue from
illegal sales of cigarettes through Andorra. In response, in late
1999, the Andorran government tightened customs laws and
modified regulations to make smuggling specifically illegal.
Andorra’s future may well depend upon its continued
efforts to mesh into broader European life. Because it depends
heavily upon its neighbors and foreign guests to survive,
Andorra is likely to continue to be accommodating to France
and Spain when those countries insist upon changes of policy.
In the twenty-first century, Paris and Madrid are most likely
to urge reform of citizenship laws in order to provide a
guarantee of rights for long-time foreign residents who wish
to become Andorrans, as well as a softening of the banking
secrecy laws in order to limit the flow of illegal capital into
the country.
Forné is dedicated to furthering Andorra’s international
relationships. He regularly addresses the UN; in 2001,
Andorra began a three-year term on the UN’s Economic and
Social Council. The Council’s 54 seats are assigned based on
geographical representation (14 to Africa, 11 to Asia, 6 to
Eastern Europe, 10 to Latin America and Caribbean, and 13
to Western Europe and others).
ADDRESS
Office of the Cap de Govern
Andorra-la-Vella
Andorra
Web site: http://www.govern.ad
REFERENCES
Bureau of Democracy, Human Rights, and Labor. U.S.
Department of State. 1999 Country Reports on Human
Rights Practices. http://www.state.gov/www/global/
human_rights/1999_hrp_report/andorra.html (accessed
March 10, 2000).
Duursma, Jorri. Self-Determination, Statehood, and International
Relations of Micro-states: The Cases of Liechtenstein,
San Marino, Monaco, Andorra, and the Vatican
City. New York: Cambridge University Press, 1996.
Forné Molné, Marc. Speeches delivered before the United
Nations, October 24, 1995 and September 20, 1999.
Ganz, Michael T. “Oh, Andorra.” Swiss Review of World
Affairs, January 1994.
“Global Opportunity.” Presidents & Prime Ministers,
September 1999, vol. 8, no. 5, p. 19.
Walker, Jane and Rod Usher. “Smuggling’s a Hard Habit to
Kick.” Time International, 25 May 1998, vol. 150, no. 39,
p. 45.
“Country Profile: Andorra,” BBC News, http://
news.bbc.co.uk/2/hi/europe/country_profiles/992562.stm
(January 16, 2003).
Profile researched and written by Paul E. Gallis (8/96; updated
3/2000, 3/2002, and 2/2003).