Andorra is one of the oldest nations in Europe, originally established by Charlemagne as a buffer state against the Iberian muslims. As a result of the Paretages of 1278 and 1288, control of the country was split between the Spanish Bishop of Urgell and a nominee appointed by the King of France (initially the Count de Foix) and subsequently by the French emperors and presidents. The country was therefore a co-principality, with two heads of state jointly sharing power – the readiness of both sides to compromise allowed this unique arrangement to last intact until the late 20th century. Although the inhabitants of Andorra were not consulted, they were prepared to accept a deal that guaranteed their security and national integrity. With the exception of a brief period during the Napoleonic Wars, Andorra retained its independence ever since.

The first semblance of internal government appeared in the early 15th century, with the establishment of the Consell de la Terra, comprising the heads of the principal Andorran families. A relatively poor enclave, its continued existence for the next 300 years was ensured by tax concessions granted by the French and Spanish governments. Eighteenth-century economic reforms in Spain seriously disrupted the Andorran economy and the principality only just managed to survive, largely through astute negotiation with the Spanish and the rapid adoption of new working practices from the Industrial Revolution. The 19th century was a period of great uncertainty, as the Andorrans struggled to maintain their independence and economic viability. It was not until the beginning of the 20th century, with the establishment of road and communication links with France and Spain that Andorra was able to get back on its feet. There was steady economic and political progress throughout the 20th century, although at a much slower pace than was reasonable for a modern European state.

The long-overdue institutional and constitutional reforms began at the turn of the 1980s. Following their completion in 1993, both France and Spain have explicitly recognised the sovereignty of Andorra, which has since applied for membership of the Council of Europe. Domestic politics are dominated by two parties – the Uniò Liberal (UL) and the Agrupament Nacional Democràtic (AND). Following a comprehensive victory in the February 1997 poll, at which the UL took 18 of the 28 seats on the Conseil General, a UL government took office under the leadership of Marc Forné Molné. Four years later, in 2001, the electorate returned the Molné government for a second term, again with an absolute majority. However, in 2005, Albert Pintat of the Liberal Party became Prime Minister, although not with an absolute majority. Molné lost his seat in the 2005 election but, in any case, was barred by the constitution from standing for a new term.

The present Andorran constitution, introduced in 1993, formally enshrined Andorra as a Principality. Administration is in the hands of a General Council with 28 members, four from each of the seven parishes, elected by universal suffrage. The Council elects a President and a Vice-President.