The fundamental impetus for this political transformation was a recommendation by the Council of Europe in 1990 that, if Andorra wished to attain full integration into the European Union (EU), it should adopt a modern constitution, which guarantees the rights of those living and working there. A Tripartite Commission--made up of representatives of the Co-princes, the General Council, and the Executive Council--was formed in 1990 and finalized the draft constitution in April 1991.

Under the 1993 constitution, the co-princes continue as heads of state, but the head of government retains executive power. The two co-princes serve co-equally with limited powers that do not include veto over government acts. They are represented in Andorra by a delegate. As co-princes of Andorra, the President of France and the Bishop of Seu díUrgell maintain supreme authority in approval of all international treaties with France and Spain, as well as all those, which deal with internal security, defense, Andorran territory, diplomatic representation, and judicial or penal cooperation. Although the institution of the co-princes is viewed by some as an anachronism, the majority sees them as both a link with Andorraís traditions and a way to balance the power of Andorraís two much larger neighbors.

Andorraís main legislative body is the 28-member General Council (Parliament). The sindic (president), the subsindic , and the members of the Council are elected in the general elections held every four years. The Council meets throughout the year on certain dates set by tradition or as required. The most recent general elections took place on April 24, 2005.

At least one representative from each parish must be present for the General Council to meet. Historically, within the General Council, four deputies from each of the seven individual parishes provided representation. This system allowed the smaller parishes, which have as few as 562 voters, the same number of representatives as larger parishes, which have up to 4,014 voters. To correct this imbalance, a provision in the 1993 constitution introduced a modification of the structure and format for electing the members of the Council; under this format, half of the representatives are chosen by the traditional system, while the other half are selected from nationwide lists.

A sindic and a subsindic are chosen by the General Council to implement its decisions. They serve four-year terms and may be reappointed once. They receive an annual salary. Sindics have virtually no discretionary powers, and all policy decisions must be approved by the Council as a whole. Every four years, after the general elections, the General Council elects the head of government, who, in turn, chooses the other members of the Executive Council. The current council has eleven ministers.

The judicial system is independent. Courts apply the customary laws of Andorra, supplemented with Roman law and customary Catalan law. Civil cases are first heard by the batlles court ña group of four judges, two chosen by each co-prince. Appeals are heard in the Court of Appeals. The highest body is the five-member Superior Council of Justice.

Andorra has no defense forces and only a small internal police force. All able-bodied men who own firearms must serve, without remuneration, in the small army, which is unique in that all of its men are treated as officers. The army has not fought for more than 700 years, and its main responsibility is to present the Andorran flag at official ceremonies.