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Tradition holds that Charles the Great (Charlemagne) granted a charter to the Andorran people in return for fighting against the Moors.Overlordship of the territory was bythe Count of Urgell and eventually by the bishop of the Diocese of Urgell. In 988, Borrell II, Count of Urgell, gave the Andorran valleys to the Diocese of Urgell in exchange for land in Cerdanya. Since thenthe Bishop of Urgell, based in Seu d'Urgell, has owned Andorra.

Over the years, the French co-title to Andorra passed to the kings of Navarre. After Henry of Navarre became King Henry IV of France,he issued an edict in 1607 that established the head of the French state and the Bishop of Urgell as co-princes of Andorra. In 1812–13, the First French Empire annexed Catalonia and divided it infour départements, with Andorra being made part of the district of Puigcerdà.

Andorra is a parliamentary co-principality with the President of France and the Bishop of Urgell (Catalonia,Spain), as co-princes. This peculiarity makes the President of France, in his capacity as Prince of Andorra, an elected reigning monarch, even though he is not elected by a popular vote of the Andorranpeople. The politics of Andorra take place in a framework of a parliamentary representative democracy, whereby the Prime Minister of Andorra is the head of government, and of a pluriform multi-partysystem.
The current Prime Minister is Antoni Martí of the Democrats for Andorra (DA). Executive power is vested in both government and parliament.

The Grup d'Intervenció Policia d'Andorra(GIPA) is a small special forces unit trained in counter-terrorism and hostage recovery tasks. As terrorist and hostage situations are a rare threat to the nation, the GIPA is commonly assigned toprisoner escort duties, and at other times to routine policing.

Andorra consists of seven parishes:
* Andorra la Vella
* Canillo
* Encamp
* Escaldes-Engordany
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