Pestle Analysis of Andorra

Topics: Andorra, European Union, Andorra la Vella Pages: 8 (2694 words) Published: March 17, 2013
PESTLE Analysis

PESTLE analysis a useful tool for understanding the ‘big picture’ of the environment in which an organisation is operating and is the abbreviation for - Political, Economic, Sociological, Technological, Legal, and Environmental. PESTLE analysis is a useful tool for understanding risks associated with market (the need for a product or service) growth or decline, and as such the position, potential and direction for an individual business or organisation. PESTLE Analysis – ANDORRA

The Principality of Andorra, the highest country in Europe, is located on the Mediterranean slope of the Western Pyrenees, between two countries of the European Union: France and Spain. Andorra is a mountainous country with narrow valleys. It has a surface area of 468 km2 and an average altitude of over 1,996 metres.

The capital is Andorra la Vella. The country is divided into seven administrative districts or parishes: Canillo, Ordino, La Massana, Encamp, Andorra la Vella, Sant Julià and Escaldes-Engordany and the country entire population is 85,105 inhabitants. 32,962 are Andorran, the rest are foreigners, mainly Spanish (26,688), Portuguese (13,100), French (50,879) and British (1,117).

The official language of Andorra is Catalan; however, Spanish and French are also used on a regular basis due to geographic proximity and cultural, historic and economic exchanges. English is used in commercial and financial activities.

Political Scenario:

Historically, Andorra has enjoyed a traditional government and political statutes. Based on the Agreements signed at the end of the 13th century, the valleys were positioned under the personal, joint and indivisible sovereignty of the Bishop of Urgell and the Count of Foix, presently represented by the President of the French Republic. Apart from being the only Co-Heads of State in the world, the Co-Princes - as they are known - are the world's only monarchs appointed by foreigners. Andorra has no control over who becomes the French President and only, by Concordat, a limited right of consultation with the Vatican over the appointment of the Bishop.

In 1993, the Principality of Andorra was given a modern Constitution by popular will that binds all citizens and public powers. Andorra became an independent, democratic, rightful and social State, and its political system is a parliamentary co-principality. Sovereignty resides with the Andorran people according to the Constitution.

The same year the Principality of Andorra signed an agreement with the European Community which deals with the tax treatment of the earnings on savings and on cooperation and became a member of the United Nations. Andorra is a member of several International Organizations such as Council of Europe, OSCE, International Organization of La Francophonie and others. The Andorran legislature is the General Council (founded in 1419), which has 28 members, elected to 4-year terms. There is universal suffrage in Andorra, with citizens over the age of 18 having the right to vote. The executive power is vested in the Executive Council, headed by a president (in Catalan, the cap de govern, or head of government) who is chosen by the General Council and then formally appointed by the co-princes. The president appoints the other executive members of the council. They have local law-making power, they pass budgets, they set and carry out public policy within their territorial areas and they manage and administer all parish property. In the judiciary, civil cases are heard in the first instance by batlles (4-judge courts), with 2 judges each appointed by a co-prince. Appeals are heard by the one-judge Court of Appeals. The highest judicial body is the 5-member Superior Council of Justice. The Tribunal of Courts in Andorra la Vella hear all criminal cases. Andorra has no standing armed forces and only a small domestic professional police brigade. There isn't a great deal of influence exercised and advice given by...
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