Andorra has become a popular tourist destination visited by approximately 10 million people each year drawn by the winter sports, summer climate, and duty-free shopping. Andorra has also become a wealthy international commercial center because of its mature banking sector and low taxes. As part of its effort to modernize its economy, Andorra has opened to foreign investment, and engaged in other reforms, such as advancing tax initiatives aimed at supporting a broader infrastructure. Although not a member of the European Union (EU), Andorra enjoys a special relationship with the EU and uses the euro as its national currency.
Location
Southwestern Europe, Pyrenees mountains, on the border between France and Spain
Area Comparative
2.5 times the size of Washington, DC
Maritime Claims
none (landlocked)
Climate
Temperate; snowy, cold winters and warm, dry summers
Natural Hazards
Avalanches
Environment Current Issues
Deforestation; overgrazing of mountain meadows contributes to soil erosion; air pollution; wastewater treatment and solid waste disposal
Environment International Agreements
Party to: Biodiversity, Desertification, Hazardous Wastes, Ozone Layer Protection
Signed, but not ratified: none of the selected agreements
Geography Note
Landlocked; straddles a number of important crossroads in the Pyrenees
