Spain and Andorra sign memorandum of understanding and agreement on avoiding double taxation and on efforts to combat tax fraud

Andorra

After highlighting the honour of being the first President of the Government of Spain to officially visit Andorra, Mariano Rajoy emphasised the strong ties that unite the two countries. He said that evidence of those ties can be found in the fact that one third of the population of Andorra is Spanish and Spanish exports account for 62% of foreign trade in the country.

Reformist efforts in Spain and Andorra

The President of the Government highlighted the "common dynamic" that has guided the governments of the two countries in recent years, which is none other than "a reformist intention to modernise our economies, create quality jobs and improve the lives of our citizens". He went on to explain that "this is a political imperative of the highest order, on which government leaders must focus wholeheartedly".

Pool MoncloaIn this regard, Mariano Rajoy recalled that "the enormous reformist efforts undertaken in Spain and Andorra are already producing unquestionable results".

In Spain, he added, "the outlook has changed enormously since the start of this parliament" and "that is not a question of perspective but rather an irrefutable fact backed up by objective data". Hence, whereas Spain was mired in deep recession in 2011, "it is expected that we will once again lead the field in terms of growth among the major Eurozone countries" in 2015. In his opinion, "nobody doubts the strength of our economy today".

However, he said that beyond doubt "the best piece of news we've seen in the last few days were the latest unemployment figures" because the number of people out of work "has fallen at its fastest rate in 16 years and jobs are being created for the first time in seven years". Nonetheless, the President of the Government said that his government will not be tempted by "reckless triumphalism" and that the main objective will continue to be "our efforts to combat unemployment and create jobs".

Signing of tax agreement

The President of the Government of Spain praised the "historic fiscal and tax reform" recently undertaken by Andorra and that represents "a very important step forward in the necessary process of fiscal standardisation by Andorra with its neighbouring countries". Within this framework, he highlighted the agreement signed today between the two countries on avoiding double taxation in terms of income tax and preventing tax evasion.

He also highlighted the opening of the Seu d'Urgell-Andorra Airport to commercial traffic on Thursday, the signing of an agreement on international road transport and the recent improvement works on the road that links Andorra with Spain. In his opinion, all these are "very important steps for improving transport inter-connections" between the two countries.

Andorra-EU Partnership Agreement

Pool MoncloaMariano Rajoy believes that the launch of negotiations on a partnership agreement between Andorra and the European Union "will help strengthen" their relations and its effective participation in the internal market. The President of the Government said that "Spain has firmly and decisively supported the launch of said negotiations as it strongly believes that closer ties between Andorra and the rest of Europe will not only benefit the principality but indeed all Europeans".

The President of the Government also mentioned the principality's participation in the Ibero-American Summits and its involvement in the programmes associated with the system underpinning these summits. Evidence of Andorra's involvement can be found in the fact that the country is currently preparing to become Ibero-American Capital of Culture for 2016, said Mariano Rajoy.

Current affairs

At the start of the press conference, both the Head of Government from the Principality of Andorra, Antoni Martí, and the President of the Government of Spain, Mariano Rajoy, condemned the attack in Paris on Wednesday and expressed their solidarity with the families of those killed.

When asked whether he fears an eruption of Islamophobia in Spain, Mariano Rajoy said he does not believe that will happen. He said Spain is a "tolerant" country that "respects the ideas of others" and guarantees religious freedom.

He said the most important step is "to continue fighting terrorism, in all shapes and forms", and do so together for increased effectiveness.

As regards the risk of further attacks, he called for calm. "We must remain vigilant, but we must also remain calm and have trust in our State law enforcement agencies and intelligence services, which have more than demonstrated their effectiveness in combating terrorism", he said.

In response to the hypothesis in which Greece leaves the Euro, the President of the Government said he is "absolutely convinced that the Euro - the most important political project to have been undertaken in Europe in many, many years - is an irreversible project. Therefore, I am absolutely convinced that neither Greece nor any other country that is currently in the Eurozone and using the Euro will ever abandon it". In his opinion, "the Euro is here to stay", it is very important for the improvement of well-being and wealth of all European citizens.

Mariano Rajoy wished the Government of Greece "the best of luck", as it has made "a great effort, has been very brave and been so during a very complicated situation".

Activities

Pool MoncloaWithin the framework of his official visit to Andorra, the President of the Government also met with the Presiding Officer of the General Council [the Síndic General], Vicenç Mateu.

He also visited the Escaldes-Engordany Spanish School together with the Andorran Minister of Education and Youth, Roser Sune. He spoke with both teachers and pupils during his visit to this centre, which is a fine example of the presence by the Spanish education system in the principality.