Modern History
Andorra formally became a parliamentary democracy in May 1993 following approval of a new constitution by a popular referendum in March 1993. The new constitution retained the French and Spanish co-princes although with reduced, and narrowly defined powers. Civil rights were greatly expanded including the legalization of political parties and trade unions, and provision was made for an independent judiciary. Andorra entered into a customs union with the European Communities (now the EU) in 1991 and was admitted to the UN on 28 July 1993. The country has been seeking ways to improve its export potential and increase its economic ties with its European neighbors. The financial services sector of the economy is highly important, given Andorra’s status as a tax haven and its banking secrecy laws.
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