Espot’s re-election could damage the trust of the US in Europe’s banks, according to US media outlet, Forbes.

Forbes columnist Melik Kylan, in a detailed report, has suggested that Espot’s failure to deal with the BPA affair could damage transatlantic relationships:

How Andorra manages its outsized banking sector will be at the heart of the elections and EU negotiations. Prime Minister Xavier Espot –who is running for re-election– is accused by investors of subverting the rule of law in an alleged abuse of power aimed at protecting Andorra’s ancient banking families from the scrutiny of US law enforcement. The scandal, which has become known in the media as Andorragate, should serve as a cautionary tale for investors and policymakers alike.

The Andorragate scandal suggests that banking regulation, under the current government, is more about who you know, than how you act. Even the merest whiff of clubby favoritism influencing the rule of law will have a chilling effect on potential investors, particularly in the wake of the Credit Suisse affair. For as long as this and the BPA case remain unresolved, transatlantic trust in Europe’s banks will continue to be in jeopardy.

This article was first published on Forbes (US) on 29 March 2023.