The judiciary functions independently. Andorra has no defense force. The national police have sole responsibility for internal security. The market-based economy is dependent on those of neighboring France and Spain. With creation of the European Union internal market, however, Andorra lost its privileged duty-free status and is suffering an economic recession.
Tourism is still an important source of income, but it fell dramatically during the year.
Because of banking secrecy laws, the financial services sector is growing in importance. The Government fully respected the human rights of its citizens, and the law and the judiciary provide effective means of dealing with instances of abuse. There were no reports of political or other extrajudicial killings. There were no reports of politically motivated disappearances. The Constitution prohibits such practices, and there were no reports that officials employed them.