Spain Threatens to Vote No To Brexit Deal Over Gibraltar

Prime Minister Pedro Sanchez wants to make sure that all talks on the future of the peninsula will be carried out bi-laterally between Spain and the UK rather than between the EU and UK.

Madrid will look to have this clarified in the draft Brexit agreement before giving it their vote.

In particular, the Spanish government are unhappy with Article 184 of the agreement that sets out for the UK and the EU to 'negotiate rapidly the agreements governing their future relationship' after the withdrawal in March 2019 and before the end of transition in December 2020.

Prime Minister Sanchez wants clarity that the final deal will allow Spain to discuss Gibraltar bi-laterally with the British government. This week he said:

"As a country we cannot assume that whatever happens in the future with Gibraltar would be negotiated by the UK and EU – it will have to be negotiated between Spain and the UK."

Until now, things had been going well. Indeed, during the tough negotiations between the EU and UK over Brexit, Spain has been holding parallel talks with Britain which have led to the establishment of three joint committees tasked with dealing with tobacco smuggling – a perennial problem – cross-border workers rights, and environmental protection.

But now the hitch with Article 184 has caused problems. And as it stands, PM Sanchez says, "if there are no changes regarding Gibraltar, Spain will vote no on Brexit."

Will Spain Really Block the Brexit Agreement?

Spain appear ready to dig their heals in on this issue, but it remains to be seen how far they are prepared to push things as PM Theresa May seeks to sign a Treaty between the UK and EU on Sunday 25^th November.

European diplomats are playing down the protests and believe that the agreement will still go ahead. The Chief Minister of Gibraltar himself, Fabian Picardo, said Spain's position "does little to build mutual confidence and trust going forward."

Whilst in London, a spokesperson for Theresa May, the UK Prime Minister, said that the Brexit deal "covered Gibraltar as well as the other overseas territories and the crown dependencies. We will get a deal that works for the whole family."

Why Gibraltar is a British Colony and Why Is There Controversy?

Gibraltar, with a population of 33,600, has been a British overseas territory since it was ceded to the British crown under the Treaty of Utrecht in 1713.

Spain now disputes this and claims that because of Gibraltar's proximity to the Iberian Peninusla it belongs to the Spanish people. Indeed, officials in Madrid refer to it as a 'British colony'.

The economy is Gibraltar is driven by businesses, many from the UK, attracted by the low tax rates and the favourable climate. Financial services and online gambling make up 40% of GDP, with sportsbooks, lottery companies, casinos and online slot sites all with headquarters in the urban sprawl under the famous rock.

Many of the workers who are employed in Gibraltar are ex-pats who live over the border in southern Spain, and easy border access through passport control is critical to a satisfactory work life.

After a referendum in 1967 saw 99.6% of residents vote to remain British, Spain closed its border and did not re-open it fully until 1985.

Since then, Spain and the UK have maintained an uneasy relationship over Gibraltar, and whatever happens, it seems that this small outpost on the tip of Spain will continue to cause controversy.