20th and 21st century: Modernisation of the country and constitution
In 1933 France occupied Andorra following social unrest which occurred before elections due to the Revolution of 1933 and the FHASA strikes (Vagues de FHASA); the revolt led by Joves Andorrans (a labour union group related to the Spanish CNT and FAI) called for political reforms, the universal suffrage vote of all Andorrans and acted in defence of the rights of local and foreign workers during the construction of FHASA's hydroelectric power station in Encamp. On 5 April 1933 Joves Andorrans seized the Andorran Parliament. These actions were preceded by the arrival of Colonel René-Jules Baulard with 50 gendarmes and the mobilisation of 200 local militias or sometent led by the Síndic Francesc Cairat.
On 6 July 1934, adventurer and nobleman Boris Skossyreff, with his promise of freedoms and modernisation of the country and wealth through the establishment of a tax haven and foreign investments, received the support of the members of the General Council to proclaim himself the sovereign of Andorra. On 8 July 1934 Boris issued a proclamation in Urgell, declaring himself Boris I, King of Andorra, simultaneously declaring war on the Bishop of Urgell and approving the King's constitution on 10 July. He was arrested by the Co-Prince and Bishop Justí Guitart i Vilardebó and their authorities on 20 July and ultimately expelled from Spain. From 1936 until 1940, a French military detachment of Garde Mobile led by well-known Colonel René-Jules Baulard was garrisoned in Andorra to secure the principality against disruption from the Spanish Civil War and Francoist Spain and also face the rise of Republicanism in the aftermath of the 1933 Revolution. During the Spanish Civil War, the inhabitants of Andorra welcomed refugees from both sides, and many of them settled permanently in the country thus contributing to the subsequent economic boom and the entry into the capitalist era of Andorra. Francoist troops reached the Andorran border in the later stages of the war.
During World War II, Andorra remained neutral and was an important smuggling route between Vichy France and Francoist Spain. Many Andorrans criticised the passivity of the General Council for impeding both the entry and expulsion of foreigners and refugees, committing economic crimes, reducing the rights of citizens and sympathy with Francoism. General Council members justified the council's political and diplomatic actions as necessary for Andorra's survival and the protection of its sovereignty. Andorra was relatively unscathed by the two world wars and the Spanish Civil War. Certain groups formed to help victims of oppression in Nazi-occupied countries, while participating in smuggling to help Andorra survive. Among the most prominent was the Hostal Palanques Evasion Network Command, which, in contact with the British MI6, helped almost 400 fugitives, among whom were Allied military personnel. The Command remained active between 1941 and 1944, although there were struggles with pro-Axis informers and Gestapo agents in Andorra.
In the capital city there was a smuggling black market of propaganda, culture and cinematic art not favourable to totalitarian regimes, promulgated in such places as the Hotel Mirador or the Casino Hotel, as a meeting place for Free French forces and a route for escorting downed Allied pilots out of Europe. The network was maintained after the war, when film societies were formed, where movies, music and books censored in Franco's Spain were imported, becoming an anti-censorship attraction for the Catalan or foreign public even within Andorra. The Andorran Group (Agrupament Andorrà), an anti-fascist organisation linked to the Occitanie's French Resistance, accused the French representative (veguer) of collaboration with Nazism.
The Andorran opening to the capitalist economy resulted in two axes: mass tourism and the country's tax exemption. The first steps towards the capitalist boom date from the 1930s, with the construction of FHASA and the creation of professional banking with Banc Agrícol (1930) and Crèdit Andorrà (1949), later with Banca Mora (1952), Banca Cassany (1957) and SOBANCA (1960). Shortly after, activities such as skiing and shopping helped the country become a tourist attraction, with the inauguration of ski resorts and cultural entities in the late 1930s. A revived hotel industry also developed. In April 1968 a social health insurance system was created (CASS).
The Andorran government necessarily involved planning, projection and forecasts for the future: with the official visit of the French co-prince Charles de Gaulle in 1967 and 1969; it was given approval for the economic boom and national demands within the framework of human rights and international openness.
Andorra experienced an era commonly known as the "Andorran dream" (similar to the American Dream) along with the Trente Glorieuses: mass culture rooted itself in the country experiencing radical changes in the economy and culture. Proof of this was Ràdio Andorra, the top musical radio station in Europe in this period, with guests and speakers of great importance promoting musical hits from chanson française, swing, rhythm & blues, jazz, rock and roll and American country music. During this period Andorra achieved a GDP per capita and a life expectancy higher than most standard countries of the time.
Given its relative isolation, Andorra has existed outside the mainstream of European history, with few ties to countries other than France, Spain and Portugal. But in recent times its thriving tourist industry, along with developments in transport and communications, have removed the country from its isolation. Since 1976 the country has seen the need to reform Andorran institutions due to anachronisms in sovereignty, human rights and the balance of powers as well as the need to adapt legislation to modern demands. In 1982 a first separation of powers took place when instituting the Govern d'Andorra, under the name of the executive board (Consell Executiu), chaired by the first prime minister Òscar Ribas Reig with the co-princes' approval. In 1989 the Principality signed an agreement with the European Economic Community to regularise trade relations.
Its political system was modernised in 1993 after the Andorran constitutional referendum, when the constitution was drafted by the co-princes and the General Council and approved on 14 March by 74.2% of voters, with a 76% turnout. The first elections under the new constitution were held later in the year. The same year, Andorra became a member of the United Nations and the Council of Europe.
Andorra formalised diplomatic relations with the United States in 1996, participating in the 51st UN General Assembly. First General Syndic Marc Forné took part in a speech in Catalan in the General Assembly to defend the reform of the organisation, and after three days he took part in the Parliamentary Assembly of the Council of Europe to defend Andorra's linguistic rights and economy. In 2004, the Madriu-Perafita-Claror Valley was enlisted as a UNESCO World Heritage Site, making it Andorra's first site, for its ancient pastoralism, communal land-use and ironworking traditions. In 2006 a monetary agreement with the European Union was formalised that allows Andorra to use the euro officially, as well as minting its own euro coins.