UK and EU Resolve Final Brexit Issue with Gibraltar Deal

The European Union (EU) and the United Kingdom (UK) have reached a long-awaited agreement to ease cross-border trade and travel in Gibraltar, ending years of uncertainty following Brexit.
EU Trade Commissioner Maroš Šefčovič announced the breakthrough calling it “a truly historic milestone” in EU-UK relations. The deal, he said, “benefits everyone and opens a new chapter” for Gibraltar and the surrounding region.
Since the UK formally left the EU in 2020, the future of Gibraltar had remained unresolved. Progress on a post-Brexit arrangement had been slow, despite the fact that 96% of Gibraltar’s voters backed remaining in the EU in the 2016 referendum.
Gibraltar has been under British rule since 1713. It holds strategic importance for the UK due to its location at the southern tip of the Iberian Peninsula, positioned at the gateway between the Atlantic Ocean and the Mediterranean Sea, directly across from North Africa.
Spain, a member of the EU’s Schengen Area, has long contested Britain’s sovereignty over the territory.
The new agreement will remove physical border barriers, checks, and controls for people and goods crossing between Gibraltar and Spain. It also ensures alignment with the EU’s Schengen free travel area and its single market regulations.
According to an EU statement, the deal “will bring confidence and legal certainty to the lives and well-being of the people of the whole region,” promoting economic stability and closer cooperation between Gibraltar and Spanish authorities.
The UK government said the agreement “resolves the last major unresolved issue from Brexit.” British Foreign Secretary David Lammy emphasised that without a deal, daily cross-border commuters would have been subjected to strict passport checks under upcoming EU entry-exit rules.
“This government inherited a situation that put Gibraltar’s economy and way of life at risk,”
“Today’s breakthrough delivers a practical solution after years of uncertainty. It protects British sovereignty, supports Gibraltar’s economy, and allows businesses to plan for the future.”
British Foreign Secretary David Lammy
Spanish Foreign Minister José Manuel Albares hailed the agreement as “historic,” while Gibraltar’s Chief Minister Fabian Picardo said it “will bring legal certainty to the people of Gibraltar, its businesses, and those in the region who depend on stability at the border.”
Gibraltar, home to around 34,000 residents, relies heavily on seamless access to the EU market and free movement across its border with Spain, used daily by nearly half of its population.
What Is The New Agreement
Under the new agreement, Gibraltar will be integrated into Europe’s Schengen Area, allowing for passport-free travel within the zone. Spanish authorities will be responsible for managing entry and exit.
The deal—pending approval by both the Spanish and UK parliaments—will eliminate physical border checks and controls for people and goods moving between Gibraltar and Spain, the EU confirmed.
To maintain the integrity of the EU’s border-free Schengen zone and single market, joint checks by UK and Spanish border officials will instead take place at Gibraltar’s airport and port. This setup mirrors existing arrangements at Eurostar stations in London and Paris, where officials from both countries conduct passport checks.
Previously, the UK and Gibraltar had opposed Spain’s proposal to station Spanish officials at the airport, which also houses a Royal Air Force base. This issue now appears resolved as part of the broader deal.
The agreement also includes provisions on visas and travel permits.
Without this deal, the UK warned that half of Gibraltar’s population—many of whom cross the border daily—would face routine passport checks under new EU entry-exit rules.
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