

There is no national monetary unit and both French and Spanish currencies are used. Because of the lack of customs duties and low or nonexistent taxes, Andorra in the late 20th century also became an important international centre of retail trade that attracted millions of shoppers from all over Europe with its duty-free imported consumer goods. From the 1950s tourism became one of Andorra's chief industries, exploiting the scenic attractions of the mountains and the area's excellent opportunities for winter sports. Industry was limited to processing these products and to handicrafts. With only about 2 percent of the land cultivable, the traditional economy centred on the pasturing of sheep and the harvesting of modest quantities of tobacco, rye, wheat, olives, grapes and potatoes. Andorra consists of a cluster of mountain valleys whose streams unite to form the Valira River. Nearly two-thirds of the population is urban. Most Andorrans are Roman Catholic and the principality is part of the diocese of the See of Urgel. Andorra's official language is Catalan its institutions are based in Catalonian law and a large proportion of the Spanish immigrants (or their descendants) in Andorra are Catalan. The coprincipality has traditionally had a strong affinity with the region of Catalonia in northern Spain.

This feudal system of government, the last in Europe, remained intact until 1993, when a constitution was adopted that greatly reduced the power of the coprinces and established separate executive, legislative and judicial branches of government. Andorra was subsequently governed jointly by representatives of the Spanish bishop of Urgel and of the French head of state, each of whom received an annual payment of a token tribute. Andorra's seven-century-old dual allegiance to two princes, one in Spain and one in France, originated in the late 13th century in a proprietary quarrel between the Spanish bishops of Urgel and the French heirs to the countship of Urgel. Charlemagne's grandson, Charles II, granted Andorra to the counts of Urgel, from whom it passed to the bishops of Urgel. Andorra's independence is traditionally ascribed to Charlemagne, who recovered the region from the Muslims in AD 803 and to his son Louis I the Pious, who granted the inhabitants a charter of liberties. With an area of 181 square miles (468 square km), it is one of the smallest states in Europe. Catalan and Spanish, French Andorre, officially Principality of Andorra or Principat d'Andorra small independent European coprincipality situated among the south slopes of the Pyrenees Mountains and bounded by Spain (south and west) and by France (north and east). The traditional economy was based on sheep raising, but tourism grew in importance since the 1950s to become central to Andorra's economy by the early 21st century.ģ.

Andorra has long had a strong affinity with Catalonia its institutions are based in Catalonian law and it is part of the diocese of Urgel (Spain). This feudal system of government, the last in Europe, lasted until 1993, when a constitution was adopted that transferred most of the coprinces' powers to the Andorran General Council, which is elected by universal suffrage. It was placed under the joint suzerainty of the French counts of Foix and the Spanish bishops of Urgel in 1278 and it was subsequently governed jointly by the Spanish bishop of Urgel and the French head of state. Andorra's independence is traditionally ascribed to Charlemagne, who recovered the region from the Muslims in AD 803. Much of the population is Spanish a minority is Andorran. Lying on the southern slopes of the Pyrenees Mountains, it consists of a cluster of mountain valleys whose streams form the Valira River it is bounded by Spain and France. officially Principality of Andorra Independent coprincipality, southeastern Europe. Principality of Andorra, principality in the eastern Pyrenees (between France and Spain) which is under the joint political control of France and SpainĢ.
