A tiny, landlocked principality between France and Spain, Andorra lies high in the eastern Pyrenees. From the 13th century, French and Spanish co-princes (today the President of France and the Bishop of Urgell) have ruled Andorra. In December 1993, the principality held its first full elections. Andorra's spectacular scenery, alpine climate, and duty-free shopping have made tourism, especially skiing, its main source of income.

Immigration is restricted to French and Spanish nationals intending to work in Andorra. Divorce is illegal and the marriage rate is low.

Strengths

Tourism is the basis of the economy. Strict banking secrecy laws make Andorra an important tax haven. Healthy luxury retail sector. Farming: cereals, potatoes, and tobacco are the major products.

Weaknesses

France and Spain effectively decide economic policy. Dependence on imported food and raw materials.

Andorra was a semifeudal state until 1993, when a referendum approved measures which legalized political parties and the right to strike, and altered relations with the co-princes. The ruling PLA, led by Marc Forné, has twice been returned to power.

In 1991 Andorra became a member of the EU customs union and adopted the euro as its official currency in 2002. It joined the UN in 1993. Andorra's status as a tax haven has prompted criticism from the OECD.

Andorra has no defense budget; France and Spain provide protection. The last military action was intervention by French gendarmes to restore order after a royalist coup in 1933.

Water is a major resource, hydropower providing most energy needs. However, Andorra has to import twice as much electricity as it produces, and plans to develop wind power. A third of the country is designated forest.

The impact of millions of visitors each year on Andorra's alpine environment is of great concern. The development of hotels, ski resorts, and transportation links threaten to despoil the country's picturesque mountain landscape. It is also endangering the remarkable flora, and creates pressure to clear forested areas.

Hunting is no longer promoted but remains a popular attraction; the wild boar and the Pyrenean chamois are particularly targeted. Some restrictions have been introduced to preserve rarer animal species.

The road from France to Spain climbs to 2704 m (8875 ft.) through one of the most dramatic mountain passes in Europe. Traffic congestion is a major problem in Andorra la Vella, especially in the summer. In 2001 plans for an overhead rail system were announced.

Andorra has one public hospital. Health spas are popular and the hot springs at les Escaldes attract rheumatism sufferers.

There are around 30 schools in Andorra, with instruction in Catalan, French, and Spanish. The University of Andorra specializes in distance learning using the Internet.

Tourists are natural targets for thieves, most of whom are not Andorran. Thefts of expensive cars for resale in France and Spain are on the increase.

Andorra's two criminal courts are known as the Tribunals de Corts.

Hotel owners are the wealthiest group of citizens in Andorran society; many choose to live across the border in Spain.

Most tourists visit Andorra to ski or shop. There is a traditional trade in day-trippers from France and Spain, drawn by the many tax-free designer-label boutiques. Five resorts offer Alpine skiing facilities, and specialize in Nordic skiing. In summer they cater for mountain hikers; Andorra's wild flowers attract many, but there is also much for the birdwatcher to see. Although not strongly promoted, hunting of wild boar is popular, and the goat-like chamois can be hunted under special license.

Since 1278, Andorra has been autonomous, ruled by French and Spanish co-princes.

• 1970 Women get the vote.
• 1982 First constitution enshrines popular sovereignty.
• 1983 General Council votes in favor of income tax.
• 1984 Government resigns over attempt to introduce indirect taxes.
• 1991 EU customs union comes into effect.
• 1992 Political demonstrations demanding constitutional reform. Government resigns.
• 1993 Referendum approves new constitution.
• 1994 Government falls; replaced by center-right Liberal cabinet, which is reelected in 1997 and 2001.