Press conference by Head of Government of Principality of Andorra and President of the Government

Andorra la Vella

Mr. Marti.- Good day to everyone. I will start this press conference, which I believe is very important and indeed an obligation.
First of all, my opening words are to strongly condemn this dreadful attack that has taken the lives of 12 people, 12 innocent people, in Paris. As I said in my Christmas speech, unfortunately, albeit perpetrated by a minority, fanaticism in Europe and around the world is taking a certain course. As democrats, we must fight this.

Above all, the people of Andorra support the people of France. You are all aware of our relations, not just as neighbours, but institutional, with the French Republic.

This attack has been on the freedom of the press and, we say this out loud, on all of you and on all of us. Beyond being merely an attack on the freedom of the press, this has also been an attack on freedom itself. Hence, I believe that it is necessary, and even an obligation as the Head of Government, and I know that this is undoubtedly shared by the President of the Spanish Government, that the opening words of my speech should be in support of the people of France.

The visit of the President of the Spanish Government is a great honour for the State of Andorra. It is the first time since Andorra signed and voted for our Constitution that we have received a visit from the sitting President of the Government. Hence, I would like to offer my sincere thanks to the President of the Government, to Mr Mariano Rajoy, for having come here and honouring us with his presence.

This visit comes within a framework of absolute normality, because as is well-known, from an historic point of view dating back a good long time, the Kingdom of Spain and the Principality of Andorra maintain good relations.
You must all appreciate that 27% of the entire population of Andorra has Spanish nationality; but not just that: 42%, which is no small number, of salaried workers in Andorra also have Spanish nationality. And not just that, 62% of all our imports come from Spain.

For this reason, this meeting between the Principality of Andorra and the Kingdom of Spain is absolutely normal; we are tied by social, economic and historical bonds.

And, moreover, I would like to personally thank the Spanish Government because over the last four years a great deal more progress has been made than we initially envisaged at the start of this legislature. And this has been possible thanks to the mutual understanding of our two States. Andorra has made a major effort in this regard. There was almost no direct taxation in Andorra five years ago - we commented on this to the President of the Spanish Government - and we can almost say, and forgive me for putting it this way, that Andorra has set a new Guinness world record in introducing corporate income tax, non-resident income tax, VAT in just five years; and now, well just a few days ago, since 1 January, personal income tax has come into force; a whole system that brings us into line with international standards, a tax system implemented seriously and swiftly, a comparable tax system. Whilst it is true that taxation is low, it is a comparable system.

This has been possible, let's not kid ourselves, by seeking to fulfil an ambition, which has not only been an ambition of this government, but which started - let's all remember this - with the government of Mr Albert Pintat in a declaration in Paris, and was continued with the government of Mr Jaume Bartumeu when he signed, also with the Kingdom of Spain, agreements on the exchange of information, and which this government has also continued. This is the logical path for a country which has opted for transparency, and hence, it was clear that this meeting would be a meeting that came within a framework of what I believe is normality.

Today we have had the opportunity to sign three agreements, all of them important and relevant. The most important agreement is undoubtedly the no double tax treaty, but no less important is the Memorandum of Understanding, Friendship and General Cooperation that we have also signed, because it is our intention, whatever may happen with successive governments, and regardless of their political persuasion, for stable and harmonious relations to continue to prevail between the Kingdom of Spain and Andorra.

This MOU will be used in a bilateral manner, whether between ministers or other competent authorities, to make progress on such important issues as the economy, healthcare, education and culture. I believe that it is an important agreement.

I believe that the President of the Spanish Government and I have tried to fill this visit with content. It was not only to sign a no double tax treaty, which is very important for both Andorra and Spain, but to go far beyond that. We have also signed, aside from the no double tax treaty, another agreement on transport.

All of this has been done because Andorra has a clear State vocation - I said this earlier - to opt for transparency and also to make a decisive commitment to the economic opening-up of our country in order to diversify our economy. We had the opportunity to speak about this in a 40-minute private meeting we held with the President of the Spanish Government and at a work meeting between the various ministers and other officials accompanying the President of the Government.

Andorra, in short, has taken a decisive step towards maintaining its economic sectors and diversifying its economy. Moreover, Andorra, and let's not kid ourselves, has also made a decisive commitment to financial transparency. We have made a commitment, and let's hope everyone takes the same decision, and shows the same interest as Andorra in implementing the automatic exchange of information in the not too distant future, in 2018 to be precise.

I repeat, there is a decisive will on the part of Andorra to undertake this reconversion; but this reconversion also requires adaptation processes, because it will make no sense at a global level unless all sectors, all States, all financial hubs, play the same game with the same decisiveness as Andorra.

I think that what guarantees these good relations with the Kingdom of Spain and also, allow me to say this, Mr President of the Government, with the French Republic, with which we have also signed a no double tax treaty, which will be ratified, unless I'm mistaken, on the 20th of this month, is that a decisive commitment has been made to modernise our economy and become much more transparent. I repeat, and I have said this on every occasion I have been asked about this, and I will say this again today and I said it when I was in Brussels; our decision has been taken, we want to accompany our banks, but we will do so if everyone else does this as well. We are prepared and I hope that the others are as well because, if not, this makes no sense.

I have had the opportunity to speak in these terms both with Minister Jordi Cinca, and with Minister Montoro. What we wanted from this meeting was not only to stage a much sought-after signing that so many previous governments before the one I now head up, have sought to fill with so much content.

Spain and Andorra will always have to be united and the interests of both Spain and Andorra will always be convergent interests. When double tax treaties such as the one today are signed, they are signed within a framework of absolute normality. We intend to sign them with other States as well. We have done so, as is logical, in the first place, with the French Republic and with the Kingdom of Spain, and we will then do so with Portugal, and we intend to sign them, because this is the path we have chosen, with other European countries and with the rest of the world.

Hence, what I would like to do is express my gratitude for the excellent collaboration that the Spanish Government has always offered the Government of Andorra. I would like to recall here and now the efforts made by the Spanish Government to continue maintaining a free and universal Spanish education system in Andorra, something I publicly welcome. And I would like to also express my gratitude publicly for the collaboration that has existed and that will exist in the famous case, which in the end came to nothing, of Ebola, which turned out to be a case of malaria.

Whenever we have asked Spain for help we have received it and I express my sincere gratitude for this. I believe it is honourable for politicians to publicly acknowledge when another government helps you out. A government will not help you, even though there are good relations, if you do not have a government that does its own homework. That is Andorra's commitment: to maintain our traditional sectors, diversify our economy, commit to opening up trade, commit to competitiveness and do away, once and for all, with the tag of 'straw men'. This is our commitment to modern society - to maintain our relations.

We have also had the opportunity, during the course of an intense work meeting, to speak about the European Union. My government firmly intends to hold talks that can and will only be for the benefit of Andorra, because there are people who understand us, who know that we do not form part of a great European country but that we are a serious country, and above all that we can be counted on, and I also want to thank the President of the Spanish Government today, with the frank collaboration of the King of Spain and also of the French Republic. There are no secrets in this life. Andorra needs time to make a transformation. This government has travelled part of the road already, but we mustn't stop here.

I will draw to a close by thanking you, in short, President of the Government, once again, for your presence here and also the minister and State secretaries, for the support that has always been offered to us by the Kingdom of Spain.

I will naturally be available, as will the President of the Government, to take any questions you may have for us.

President of the Government.- A very good afternoon to you all and thank you very much for attending this press briefing.
I would like to start my speech by reiterating the words of the Head of Government, Antoni Martí, in relation to the murders that took place yesterday in our neighbouring country - France. I did so yesterday, but I would like to do so again today.

I would like to express the solidarity of all the people of Spain with the families of the people who were murdered and I would also like to express our best wishes to all those injured in the hope of a swift recovery, and express our full solidarity with French society as a whole. I would also convey our support and I would like to express my wishes, and do so publicly, that those individuals that have murdered these honourable people who had done nothing are soon brought to justice.

At the same time, I also want to reiterate our commitment to the defence of certain values that belong to many millions of human beings around the world, such as freedom and the fundamental rights of individuals, which we will never renounce.

I appear before you to take stock of the official visit I have made to the Principality of Andorra and I do so with special satisfaction since, as has been mentioned here already, I have the honour of being the first President of the Spanish Government to make an official trip to Andorra. This is a true milestone in our bilateral relations, but at the same time, as Antoni Martí correctly stated, it is an absolutely normal event.

The bonds that link the societies and the economies of the Governments of Andorra and Spain are unparalleled and I would remind you of just two figures: firstly, the Spanish people represent no more and no less than just under one third of the population of Andorra, and Spanish exports represent 62% of Andorran foreign trade. Figures of this magnitude cannot be witnessed with any other country in the world.

I would like to express my thanks to the Head of Government, Antoni Martí, and to his collaborators for their warm hospitality.
As I already said, Spain and Andorra are bound by ties of all natures and by very intense relations between our respective governments. The Head of Government and I have just signed, as he mentioned in his speech, a Memorandum of Understanding, Friendship and General Cooperation. I understand that you have access to the text of this MOU, and hence I won't provide you with any further details; I would just say that this MOU merely reflects and systemises these intense relations that have been taking place between our two governments.

I would indeed like to emphasise a common dynamic that has guided our governments in recent times and that is the reformist intent to modernise our economies, create quality jobs and improve the lives of our citizens. This is a political imperative of the first order to which we, as governors, must lend our deepest support.

Allow me to stress that the huge reformist efforts of Spain and Andorra are already bearing fruit in an unequivocal manner. The panorama in Spain has changed enormously since the start of this legislature. This is not an assessment but rather an irrefutable fact seen through objective data: in 2011, Spain found itself in deep recession, while in 2015, forecasts show that, once again, we will head up growth of the major economies in the Eurozone. Compared with levels that exceeded 600 basis points, the risk premium - which measures market confidence in our economy - is now hovering around the 100 basis point mark and the fears of a bailout of the Spanish economy are now, fortunately, far behind us. No-one today doubts the buoyancy of our economy.

But the best news we have undoubtedly seen in the last few days have been the new unemployment figures. The number of people out of work has dropped faster than at any other time in the last 16 years and net jobs are starting to be created for the first time in seven years. I can assure you, at any event, that we will not fall in to the trap of imprudent triumphalism. We will continue to devote maximum time and effort to the most important task still ahead of us - the fight against unemployment and job creation. This has been and will continue to be our main objective, and I can assure you that we will not let up in our efforts to achieve this.

In turn, Andorra has just undertaken, and I believe it is only fair to acknowledge this and valuate this, an historic reform of its fiscal and tax system with the aim of bringing it into line with OECD and EU systems. The reform is part of the general political objective of the government lead by the Head of Government, Antoni Martí, to achieve a greater degree of openness of the Andorran economy and the diversification of its core traditional economic activity.

The outcome of this effort at fiscal reform and of opening up the economy has been the signing, by the Spanish Minister for the Treasury and the Public Administration Services and his Andorran counterpart of a no double tax treaty with Spain, on a complementary basis to the one already signed with France on the same issue. We can but welcome this treaty since it represents a very significant step forward in the necessary process of the tax standardisation of Andorra with its neighbouring countries.

In another scheme of things, allow me to point out that today La Seu d'Urgell-Andorra Airport has opened to commercial traffic and an agreement has also been signed on international road haulage. Together with the recent reform of the highway that connects Andorra with La Seu d'Urgell, these are very important steps for improving transport interconnections between Andorra and Spain. We sincerely welcome these achievements, which show that Andorra is increasingly united and integrated with the rest of Europe, and that is in line with the fundamental philosophy of the European project and the spirit of our times, which demands borders be overcome and integration stepped up with a view to improving the quality of life of our citizens.

Another very important step taken by the Andorran Government has been the implementation of the process leading to the negotiation of an association agreement with the European Union, which will contribute to extending relations between Andorra and the EU and its effective participation in the internal market. Allow me to point out that Spain has been one of the main drivers behind this process. Spain has decisively supported the commencement of these negotiations, through the conviction that bringing Andorra closer to the rest of Europe will not only benefit the principality but also the rest of Europe. I have said this many times, but I would like to reiterate it now, before all of you: one of the most important cornerstones of the European Union is the creation of a space of shared prosperity without borders.

We could add, in addition to all the foregoing, the growing participation of Andorra in the system of Ibero-American Summits, a participation that now dates back a decade. In this area, Spain has also played a leading role, firstly by backing the adhesion of Andorra to the summit system, and now through its more fruitful and effective participation in the programmes related to this system. Evidence of that is that Andorra is presently preparing to become the Ibero-American Capital of Culture in 2016.

In short, we find ourselves at one of the most decisive crossroads in the last few decades of Andorran relations with Spain, with the European Union and with the Ibero-American Community. I am absolutely convinced, which is why I mention it, that the ambitious reforms and actions undertaken will help boost the international role of Andorra, will be beneficial to both Andorran society and indeed to Europe as a whole.

Finally, I don't want to finish without stressing my government's commitment to culture and education in Andorra. As you are aware, the Andorran, Spanish and French education systems operate side-by-side in Andorra perfectly well and are officially recognised by the Andorran Government. This morning, I visited the primary school in Escaldes-Engordany as an example of this commitment from Spain to maintaining and strengthening the presence of the Spanish education system in Andorra.

Thank you very much for your attention and I will now take any questions.

Q.- I will ask a question in Catalan for both Heads of Government. We would like to know what 'red lines' there were for signing the no double tax treaty between the two countries and if the automatic exchange of information has been one of the obstacles.
And we would also like to know, taking into account that Andorra is following the OECD calendar for the automatic exchange of information, whether the Spanish State is prepared to wait until 2018.

Mr. Martí.- I don't believe there have been any 'red lines'. In relation to double tax treaties, on many occasions, probably because we have no track-record in the matter and because Andorra is not used to signing double tax treaties, those who have negotiated double tax treaties are aware that there are no 'red lines'; what there is, is a seriousness regarding the meaning of a double tax treaty. All double tax treaties are based on the standards set by the OECD.

As regards everything that has been said these last few days and that I have heard talk of regarding pressure from the Spanish authorities for the automatic exchange of information, with the grace of the President of the Government and his minister, I can clearly state that no such pressure has existed. What there is though, is an Andorran roadmap that is different to what we are talking about in relation to the double tax treaty, which is the express intention in the terms I mentioned in my opening speech that everyone should play on a level playing field because, if not, it makes no sense, because there will always be financial centres and States that do not cooperate. In that case, we would all come out losing; even Europe could lose if it truly makes a great effort towards imposing the automatic exchange of information while other continents, or other countries, or other financial jurisdictions do not do so.

Hence, in response to your question, I would say to you that there are no 'red lines'. The DTT - allow me to express it in these terms, as also the President of the Spanish Government will do - has been agreed within a framework of normality. Nowadays, all States, not just the Spanish State, but also the French Republic, are renegotiating all their DTTs. That was very clearly explained, I think, by Minister Jordi Cinca in response to a parliamentary question but I have no problem in explaining it again. There are developments in standards applied to DTTs.

But, in response to your question, these 'red lines' have not existed, but it is also true that, if they had existed, Andorra would not have signed the treaty, not due to a lack of interest in transparency, but rather because we would have required more time, and I said this in my opening speech, to adapt our banking system.

As regards your second question, the calendar for 2018 is the only calendar. It is clear that we are geographically and geopolitically situated between two States that are our neighbours and our friends. We are thus situated in Europe, but the world doesn't end with Europe. The OECD is a multilateral body beyond the scope of merely Europe. I believe that the commitment made by Andorra in saying "we can commit, but only if the whole world also commits" clearly shows that this position helped to sign the DTT, but this is not a position that the Kingdom of Spain has ever imposed on us, nor indeed the French Republic, or the European Union, or America.

We need time to transform our economy. I am convinced that the Spanish Government appreciates that our financial system, which represents more or less 17% to 18% of the Andorran Gross Domestic Product, needs time to adapt.

And international relations take place in a serious environment, from commitments made, from promises given, and beyond this, from events that show that this promise has been kept.

The DTT has taken place within a framework of normality. On many occasions - the President of the Government referred to this, and I thank him for that; I also referred to it - it is clear that the DTT is very important for us; but it is equally as important for us as it is for Spain. It is clear that our companies could not compete when taxed at around 24%, that won't have escaped anyone's notice. But, when imports from Spain amount to 62% and when the figures just mentioned of Spanish residents represent 42% of our population, it is clear that this DTT is a win-win situation for both parties.

If we take this path, if we change the course with caution but decisively, without hesitation but without rushing, our banking system, the banking system of Andorra, we will have another economy that will not replace but rather complement and increase our competitiveness surrounding those economic sectors that are already well grounded.

Coming back to your question - sometimes I don't know how to explain myself better, but, at any event, I try to be as didactic as possible - this has taken place within a framework of normality. In a few years, perhaps not just yet, we will see that what we are doing now, which is an historic moment, will result in other historic moments. History is written every day but within a framework of normality. Someone had to open the way, but it was clear, and it wasn't necessary to study at any great college of economic science to see that it is impossible to sign a DTT if tax figures don't exist that are, at least, comparable with those of the country with which you sign the treaty.

Hence, we don't want to complicate something that is taking place normally, and moreover, not only within a framework of normality, but also of necessity, which I believe is mutual for both Spain and Andorra, if the President of the Government will allow me to say so because - and the President of the Spanish Government mentioned this - there is no other country in the world that has these percentage figures, not in terms of population, because we are who we are, but where in percentage terms there are so many Spanish interests and so many Andorran interests to also compete in Spain.

This is the diversification of our economy. The diversification of the economy takes place within a climate of transparency and seriousness, and also with respect for our singular status and for time factors, and I would like to thank the Spanish Government and the French Republic, which are aware that this restructuring requires time and due process.

Andorra, and today I have the opportunity to speak with all the foreign media, does not live exclusively off of the 17% of its Gross Domestic Product from the banking system. In Andorra, like in Spain and France, 42% of the Spanish residents, the Andorran residents and the Portuguese residents - because we are a welcoming land based on neutrality- get up at eight in the morning like in any other society to work in many sectors. And this DTT will enable more people to be able to get up in the morning because they will have a job to go to and they may work in sectors that are well established, or they may work in other sectors that will be opened up thanks to these reforms that this government has set in motion. And I repeat that this is not the exclusive domain of this government - you know that I have never liked to refer to the authorship of works - but a logical move forward from previous governments.
It is also true that in order for States to sign a DTT, I repeat - and I will finish here - this must be based on trust; but beyond just trust, because you not only need trust but also to be serious. Seriousness is also important.

President of the Government.- I believe that this has been made clear; but I will summarise my position which is , in essence, what we have just heard. There are no 'red lines'. The treaty has been signed because the two parties consider that this is the best thing for them. Logically, I am not going to sign a treaty that I don't consider to be good for Spain, and in Andorra, and in general in all the countries in the world, people don't tend to sign treaties that are not good for them.

I also want to say that Spain has signed similar treaties to the one signed today on other occasions. From the point of view of my country, I believe that very significant steps have been taken in the right direction and that this should be taken into consideration.
And finally, I want to point out that reforms are typically undertaken little by little. Nothing is solved overnight. We have been very involved in a reform process since we came to power. We have had to reduce the public deficit knowing what the target was, but we also knew that we could not do this in just six months, quite simply, because it was just not possible. That is the reformist spirit: undertake things little by little, reform and… It really is the best way, the most effective and sensible way to govern in the end.

The reforms are being undertaken little by little and I believe that the steps that have been taken - I said so in my speech earlier and I reiterate this now - are positive steps in the right direction. And, of course, Spain is very satisfied, both with the issue of the automatic exchange of information and with the DTT.

Q.- My question is for both of you. We wanted to know whether the agreement signed today will help avoid cases such as that of Marc Márquez and other sportspeople, or whether it will allow further steps to be taken in fraud investigations such as the "Pujol Affair" because, while this treaty is being signed, Andorran justice is putting up obstacles to the Spanish justice system.

The second question is for the Spanish President of the Government on the attack that took place yesterday in France and on the shootout this morning in Paris, because the Spanish Minister for Home Affairs has just confirmed that this was a Jihadi attack; information which has also been confirmed by the French authorities. Are you concerned, President of the Government, that these actions, these attacks, will provoke a wave of anti-Islamic sentiment in Europe, and specifically in Spain? What is the real danger posed by the Islamist cells in our country?

Mr. Marti.- I was aware that this question may be asked. Without wishing to play devil's advocate, because that is not in my nature, any question may be asked and the Head of Government of Andorra is obliged to answer them all, with total transparency. On many occasions it has been said of me, of the Head of Government of Andorra, that I have remained silent too long in the "Pujol Affair". I suppose that today you will have the opportunity to see that I will not remain silent because I will answer your question.

Andorran justice has not placed any form of obstacle in the "Pujol Affair". I don't believe it would be appropriate for me, and hence I will not mention specific countries, but there have been various letters rogatory in relation to the "Pujol Affair". Clearly I will not exceed my bounds because these are sub judice issues. Andorra signed and meets its commitments under the European Cooperation Convention on criminal issues and the Andorran Law on International Criminal Cooperation. This is a Council of Europe Convention which states what it states. There are mechanisms provided under this convention.

Where is the situation at without wanting to go into legal issues? Two letters rogatory have been presented to Andorra. In other countries, in similar affairs - I will not name names - two more letters have been presented according to the press. In regards to Andorra, I am certain that there are two letters and, allow me to express this in the conditional, in other countries two letters rogatory have been presented that have been refused.

In Andorra, of the two letters presented, one, which was issued by the National High Court of Spain in Madrid, was accepted, as notified by the investigating judge. Now, in order for processes to have all necessary legal guarantees, and you will understand me… What has happened? Since this is in the public domain, I can explain it. The parties have appealed. But this is not a specific issue that affects Andorra, it is an issue that falls within the mechanisms to guarantee legal protection for both parties. In short, I don't know exactly when but I believe that shortly because I think the deadline has expired, the investigating judge, in light of the refusal of those people allegedly accused, will hand down his ruling.

Hence, if, in the end, the judge in Andorra, in one of these hypotheses, decides not to admit the appeal and upholds his original decision, the information requested under the letter rogatory will be transmitted. Under no circumstance do I see that there has been any obstruction on the part of the Andorran justice system; what there has been is strict compliance with the convention signed.

There was a second request, I believe that in this case from a court in Barcelona. The Andorran judge asked for complementary information and this complementary information, as far as I am aware, has been transmitted, and we are waiting to see if the judge accepts this or not. It could transpire, or perhaps not, that both of the letters rogatory are finally accepted.

Hence, in the same way as I say that Andorra needs time to adapt, but that it is prepared to adapt, if everyone, without any form of hypocrisy, adapts… What we will not do, because it is not a question of hypocrisy but a question of complying with the law and, in any event, it is a legal process before the Andorran justice system. I repeat, there have been other letters rogatory in other countries that have been refused. The one from the National High Court was accepted, but there have been pleas submitted, which they are fully entitled to do. The court is analysing them and will make its decision. And in relation to the second case, from the Court of First Instance in Barcelona, unless I'm much mistaken, complementary information has been requested.

With all due respect, what cannot be said is that Andorran justice is placing obstacles in the way. Andorran justice is doing what it must do within the deadlines established at law.

We have not spoken about the "Pujol Affair". Why not? Because relations at this time with Spain go far beyond just the "Pujol Affair". You mentioned the case of a passive resident who, in the end, did not process his request for passive residency in Andorra. We have our legislation and we have made a clear commitment, in any event, and whoever comes here is aware of the conditions and mechanisms that exist here to establish oneself; but, similarly, if you will allow me, as in Spain or in other countries of the European Union. And, in Spain, legislation also exists that fosters well-known people to establish their residence there.

Hence, let's look at things within a certain framework of normality. Clearly I am not going to judge anything here, nor sportspeople, whether they are elsewhere or not. You have asked me this question and I have answered with complete normality. The "Márquez Affair" is a case that I appreciate may have a great media impact, the "Pujol Affairs" is a case that may also have a great media impact, but in both cases Andorra is behaving in an exemplary manner.

President of the Government.- What I would like to make clear, and the Head of Government has also done so in his speech, is that I have not come here to talk about individuals. We have not spoken about any of these issues you have raised. I have come here to sign, among other things, and from a fiscal point of view, a double tax treaty, which I believe is very positive, as I pointed out earlier, for my country and I also understand for Andorra. And I have also come here to improve, and I believe we have achieved just that, the situation in terms of tax information that may be of interest to the Spanish people as a whole.

What the justice system has done and in terms of the letters rogatory, I am not going to get into that. I will always respect the decisions taken by the Spanish justice system, the Andorran justice system and the justice system of any other country, because of course, I believe, as the democrat that I am, in the separation of powers.

As regards the issue of possible Islamophobia in Spain, I sincerely cannot see it. I believe that Spain is a tolerant country and Spain is a respectful country, in general, when it comes to the ideas of others.

Just think that in Spain over recent years, the last 10-12 years, six million foreigners have come into our country. A great many people have come to work in Spain, they have made a dignified living and in the vast majority of cases they have not caused serious problems. I believe that a very reasonable process of integration has taken place.

Spain, on another note, is a country with a constitution that guarantees the rights and freedoms of all; among others, as you would expect, religious freedom. But Spain is a country that will never give any quarter to terrorism, nor to those who seek to do away with the rights and freedom of others, which is what happened in France yesterday.

Hence, I believe that we must be discerning: terrorism is the enemy, but then each of us, clearly, can defend the position one wants. European constitutions allow this but only whilst respecting others. Hence, the enemy is the one that seeks to do away with rights and freedom, starting with the very right to life; but I also refer to all those other rights that are inherent to mankind.

In this regard, I am calm. I believe that the most important thing now is that we continue to do battle with terrorism in any of its shapes or forms and that we are effective, and that we do this together by collaborating as far as possible with each other. That is what society is calling for and that is what the government is obviously prepared to do.

Q.- President of the Government, as regards the danger from Islamist cells, what danger can these represent for our country?
President of the Government.- We must always be alert. Unfortunately, Spain is a country that has suffered from terrorism; it is probably one of the countries in the European Union that has most suffered from terrorism. Perhaps this has enabled our law enforcement agencies to be well prepared to face this challenge. A meeting was held yesterday at the headquarters of the Ministry of Home Affairs. But as I also mentioned yesterday, we must remain calm. I am not going to send out a message that does not respond to any certain, objective or substantiated fact; but we have raised the level of alert, as you are also aware and were duly informed of.

Hence, we must remain alert, but we must also remain calm and trust in the State law enforcement agencies, and in the information services, which have abundantly demonstrated their effectiveness in the fight against terrorism.

Q.- This question is for both of you. You have mentioned that you talked at the meetings you held about Andorra's new proximity to the European Union. I wanted to know if Spain has made a commitment in terms of this Association Agreement to support Andorra and if it also understands our specific features. What specific features would be contemplated which Spain feels must be respected? Will this be linked to the automatic exchange of tax information under the OECD guidelines?

Mr. Martí.- I will start with the last question since they are two distinct issues. One thing is what is being negotiated, and I have already expressed myself sufficiently clearly as regards the OECD, and another thing is the Association Agreement.

The Association Agreement - let's look at this from an Andorran perspective - is not some special whim of this government as if it had been thought up a few days ago. The Andorran Government spoke about the issue of the Association Agreement with the European Economic Area, not just in the time of Mr Jaume Bartumeu, or even the government of Albert Pintat, but as far back as the government of Mr Marc Forné.

Let's put things in their place, if not we will have the feeling that this government is wandering off into a European adventure when, in short, it is something akin to the DTT, which was a real ambition. I repeat, this has been achieved today, which is a true milestone. I will express myself in the same terms in relation to the Association Agreement.

Why these specific features? Not because the Head of the current Government says so, but because that is what the Treaty of Lisbon states and part of the Treaty of Lisbon was drafted by an Andorran. One day, we will look back and remember that it was drafted by Mr Juli Minoves, who should receive personal recognition for this feat.

What I want to say is that, deep down, when this decision is finally taken it will be a decision that dates back a long time. What are the specific features? The same specific features that a country like Lichtenstein achieved way back in terms of the free movement of people. We know, and I said this in my end-of-year speech, that it is a challenge, that there may be uncertainties, but I also said, very clearly, that Europe will continue to march on regardless of the fact that we remain silent.

So, what is the problem? I will answer this today publicly. If we have been capable of having low, but comparable taxation, of having managed, not with just any country, but with two great countries like the Kingdom of Spain and the French Republic, to sign and ratify… If the President of the Spanish Government will allow me, this may be newsworthy, because you are aware that there will be elections in Andorra soon. There is already a clear intent on the part of the Government of Andorra - I hope that there will be a clear intent whatever happens in the upcoming elections, whichever government wins - to take this to the General Council and there also exists an intent of the part of the Spanish Government to take this to Parliament, to the Spanish Parliament, and quickly, so that it can be ratified this year. I say this because it also seems another interesting aspect to me that is worth highlighting. Hence, there are many specific features. We will have the opportunity to speak about that.

As regards your question, I would like to once again express my gratitude, and I have said this to the President of the Spanish Government, at being lucky enough to have not one neighbour, but two neighbouring members of the European Union, which are France and Spain, with which - and this is not the result of this government, but of successive governments - we have excellent relations; to the north and to the south of the Principality of Andorra.

We have received a commitment, because everything is based on both trust and seriousness, that Spain will help us in reaching an agreement deriving from these negotiations to sign this Association Agreement, as we have also a commitment… Shortly, next Tuesday in fact, I will visit the French Prime Minister, Mr Manuel Valls, and I would also point out that I will have the opportunity to see our co-Prince, Mr François Hollande, and the Minister for Foreign Affairs, who has visited his French counterpart, as he has visited his Spanish counterpart. And, at a personal level, today we have had the opportunity to speak with the President of the Spanish Government, and with the minister and State secretaries that have accompanied him.

We can be grateful that we have received such decisive support from both the Kingdom of Spain and the French Republic. That is why it is so important to receive visits such as the one we received a short time ago from our co-Prince François Hollande and such an important visit as the one we have received today from the President of the Government of Spain because, beyond mere talks, there is no better way to get to know a country than to visit it, to come and see what it is like.

Forgive me, President of the Government. We are a country of only 464 square kilometres. We don't want to compete with powers such as Spain or France, but rather, it would be very easy for Spain and France to say: this is a problem of a small country, a small third party, which is going to enter into an Association Agreement, or not; that has set out on a path that requires we look into it.

Hence, in response to your question, specific features clearly exist. We are not France or Spain; anyone can appreciate that. That has been drafted in the Treaty of Lisbon but, above all, and to conclude, I would like to thank the President of the Government for his visit here today, but I would also like to thank co-Prince Hollande, and we will have the chance to speak about this issue with the Prime Minister on Tuesday in terms of the clear and decisive support we will receive during the course of these negotiations.

President of the Government.- It is clear that the talks surrounding the Association Agreement have nothing to do with the decisions we have adopted on tax matters here today.

In relation to the first question, I pointed out in my opening speech that we have supported the commencement of these talks right from the start, and we have been one of the main driving forces behind them. We believe that this is good for Andorra; we also believe that it is good for Spain and for the European Union as a whole, and I hope that they are fruitful and satisfactory, both for the Andorran Government and for all Andorran citizens, as well as for the European Union as a whole and for the European Commission.

That is an issue we have dealt with today because it was no small matter. It is an important issue, above all for Andorra, but also for those of us who feel European and want to see more Europe.

It is clear that there are specific features. These features must be taken into account during the course of the talks that are presently taking place; but I must say that this makes perfect sense; Andorra, as we were reminded by the Head of Government, has the population, the square kilometres and surface area it has; it comes from a certain situation, it is undertaking reforms, it is taking very important steps in the right direction, but, as everything in life, this takes time and has its nuances.

Spain appreciates this perfectly - I said this today; I repeat, it is one of the issues that we tackled during our meeting - and Andorra and its government will receive the full support of the Spanish Government to reach an agreement that is satisfactory for all concerned.

Q.- A couple of questions for President of the Government Rajoy. The first concerns the whole debate surrounding Greece and the turmoil this is causing. Does the government believe that a suitable exit for Greece from the Eurozone is a possibility? Do you believe that there may be a political contagion, that the effect of Syriza may help benefit Podemos in Spain?

I also wanted to ask you another question. This is your first appearance following the Christmas break and you said that after Christmas it would be time to talk about the candidates from your party. Today, your Vice-President of the Government has said that "she will go wherever she is sent". So, will you send her anywhere or do you have any plans for Soraya Sáenz de Santamaría to stand as a candidate?

And taking advantage of the fact that the two of you are here, one question for the both of you: I don't know whether at the meeting you spoke of everything surrounding the issue of the independence of Catalonia, which is just a few kilometres from here, on the other side of the border; and of how prejudicial this could be. In fact, Andorra has always placed itself in a neutral position in this whole debate. Has that changed as a result of this meeting?

President of the Government.- In relation to the first issue, Europe suffered from a major crisis, because this affected various countries, including our own which, as you are aware, was on the verge of being bailed out in 2012, following which we had to take certain decisions that you are aware of. But I am totally and utterly convinced that this period, the worst period, has now been overcome. I am absolutely convinced that the Euro, which is the most important political project to take place in Europe for many years, is an irreversible project, and hence, I am absolutely convinced that neither Greece nor any other country that is presently a member of the Eurozone and which consequently has the Euro as its currency will ever abandon it.

The Euro is here to stay and I believe that this is very important for improving the well-being and the wealth of the citizens of Europe as a whole. Hence, I have absolutely no doubts about this.

As regards political contagion, no. In Portugal, one party may govern with one ideology; in France with another, and in Greece with another. I sit down at European Union meetings of the European Council with leaders from socialist parties, conservative parties and liberal parties... In other words, I believe that each country has its own reality as does Greece.

I must say, without any great desire to get involved in issues that don't correspond to me, that the Greek Government has made a great effort; it has been very brave - it has been so in a very complex and difficult situation - it has also received support from the European Union, and I, as a member, in this case, of the European People's Party, wish it the best of luck. Moreover, I feel sure, I repeat, that it is clearly understood that all I am doing is presenting my opinion.

But if you ask me for the best scenario, Greece will not exit the Euro, nor will any other EU country, and that is good for Greece, good for all the Mediterranean countries and good for Europe as a whole.

The only thing we will concern ourselves with in Spain, as you are aware, because I have been saying this for a long time now… We are going to concern ourselves with many things, but the main national objective remains job creation and economic growth. You will appreciate that after six years of shedding jobs, in 2014 the number of National Insurance contributors rose by 400,000, which helps spur us on and stimulates us to ensure that 2015 is even better than 2014. I believe that this can be achieved; I am convinced that this can be achieved and I think that 2016 will be even better, above all if we are able to maintain this economic policy, if we are able to control the public deficit and continue with our reformist policies as we have to date.

As regards the issue you asked me about, not a word has been spoken about it yet. This is a domestic issue for our country and my position on the matter is already well-known, and it doesn't seem right for me to make reassertions here today on the principles in which I believe and that I think are positive for all my fellow countrymen.

The Vice-President of the Government? Indeed, this will be after Christmas and we are now after Christmas and will continue to be so, I fear, for the rest of our lives, which hopefully will be long for everyone. There is nothing new to say on this issue and I would stress that I am not the one to send candidates anywhere. They are chosen by the People's Party through the procedure you are aware of, just like me.

Mr. Martí.- That is a fairly easy question to answer, although I will then take the opportunity to mention another thing since both the Spanish and Catalan media are here.

Absolutely nothing whatsoever has been mentioned in relation to Catalonia. At this meeting, which was of a very political nature, we have spoken about very important issues for Andorra and for Spain. The problem of Catalonia, as I said publicly on the Catalan public radio-television channel, is a problem that Spain will resolve. I should not get involved in issues that do not fall to me. Hence, it is not a question of neutrality, it is a question of rationality - a question of being rational.

I would take this opportunity to say that I have recently read that it is true that there are good relations with the Kingdom of Spain and it is true that there is a good relationship with the King of Spain and with Mr Mariano Rajoy, as there were also good relations with Spain when Mr Rodríguez Zapatero was in power, as there are also good relations with France and with Mr Hollande, and there was also a good relationship, as far as I am aware, with Mr Sarkozy.

I started my speech by saying that I deeply regretted what took place in Paris. I studied in France. I regret this and it is something that pains me greatly. I will also tell you something you didn't know: I used to read the magazine "Charlie Hebdo". I don't have left-wing tendencies but I used to read it. I said that this was an attack on the freedom of the press and an attack on freedom in general.

As regards the press, which I greatly respect, my obligation, as for any other leader, is to respect the press, because they do a great job; today I am going to clarify that each time you have seen me with the Spanish Government has been on an official occasion, with the honour of today's visit here in Andorra, and I have had the pleasure of being received in Moncloa Palace, and at meetings I have had at the Ibero-American Summits, although I have never gone to Galicia to spend six hours when Mr Rajoy was on holiday there… We must all suffer from collective amnesia because I don't remember that and today I asked President of the Government Rajoy if he remembered, and he didn't either.

I have the greatest of respect for the media, but a public leader holds public meetings and speaks about issues that must be dealt with. We have not spoken today about the "Pujol Affair" because there were too many other important issues on the table. We have not just signed just any document today; we have signed a document which has not been spoken about much, which benefits, and I must thank the Spanish Government for this, Andorran road hauliers more than Spanish road hauliers. No-one should be afraid of that; Andorra does not have a transport fleet that will be prejudicial to anyone else. And we have also signed a MOU that sets the bases for what is a historic relationship and, moreover, it states that we must even go beyond that.

We have signed a DTT and we have spoken, and I thank you for your questions, of our decisive commitment, which was also a decisive commitment from France and Spain, to these talks, which will not be easy - let's not kid ourselves - with the European Union. I have also said this openly today, and we have spoken, and I also say this when I travel to Brussels, I say this when I travel to Paris and I say this when I travel to Madrid, because you can't make 50,000 speeches. We have made a commitment, that if everyone else plays the same game, we will be able to reach this agreement on the automatic exchange of information by 2018. Meanwhile, we are fulfilling the terms of the agreements we have signed.

I don't know if there are any more questions. This has been a meeting held within a framework of absolute normality. I believe that it is an important fact that the President of the Spanish Government, of the government of all the people of Spain, has come to visit Andorra when 27% of our population have the nationality of the President of the Government who has come to visit us, when 42% of workers in Andorra have the same nationality as the President of the Government who has come to visit us, and 62% of our imports come from the country he heads up.

President of the Government.- I wanted to say one thing, which, although it is true that it did not come up in this meeting, you are invited to come to Galicia whenever you want. I would be honoured to receive you.

Thank you very much.