After four years of negotiations, Spain, the European Union, and the United Kingdom have reached a political agreement that establishes the basis for the future legal agreement on Gibraltar. A text that has been reached after 18 rounds of negotiations between technicians and after five political meetings between Maros Sefcovic, the European Union commissioner in charge of the report, José Manuel Albares, Spanish Minister of Foreign Affairs, and their British counterparts. It was first met with David Cameron and finally ratified with David Lammy.
It is a nine-paragraph document that addresses crucial issues for the Peñón and the Campo de Gibraltar and aims to establish the so-called "shared prosperity zone" for both parties. A text very similar to the agreement reached on New Year's Eve 2024, which barely advances in details and sheds little light on how it will be ratified operationally.
The most controversial and delicate point is sovereignty. The United Kingdom obtained Gibraltar thanks to the Treaties of Utrecht of 1713. A document that established the boundaries owned by the British, boundaries that have been discussed on numerous occasions. Although Gibraltar stated in its subsequent communication yesterday that it is a document that "protects the sovereignty and economic security" of the Peñón, Spanish Prime Minister Pedro Sánchez stated that Spain will not renounce its claims.
According to diplomatic sources, the discussion on sovereignty has been set aside to advance in an agreement necessary for the prosperity of the Spanish territories neighboring Gibraltar. The Spanish text also states that "the future Agreement safeguards the respective legal positions of Spain and the United Kingdom in terms of sovereignty and jurisdiction." However, Spain does not gain an inch in its historical claims.
"All physical barriers, checks, and controls on people and goods moving between Spain and Gibraltar will be eliminated, while preserving the Schengen Area, the Single Market of the EU, and the Customs Union." Literally, this translates to the disappearance of the fence, a controversial point. While the Minister of Foreign Affairs stated that it signifies the end of the "last wall of continental Europe," some diplomats believe that removing the wall erected by the United Kingdom to mark its lands will blur the boundaries between the countries and lead to sovereignty issues.
There are also concerns that this could facilitate smuggling. More optimistic views are presented in the statement, claiming that this will "bring confidence, legal certainty, and well-being to the inhabitants of the entire region, promoting shared prosperity and close and constructive relations between the authorities of Gibraltar and Spain." However, London insisted that "immigration, law, and order will continue as before."
"The Parties have agreed to establish dual border controls between Gibraltar and Schengen at the port and airport of Gibraltar, to be carried out through full cooperation between the EU and UK/Gibraltar authorities, eliminating all controls at the border crossing between Gibraltar and La Línea for the many thousands of people who cross it daily in both directions." This advancement is a triumph for the over 15,000 Spanish citizens who cross daily to the Peñón, streamlining transit. However, the airport is controversial, as the runway belongs to the Royal Air Force, as does the port, which has a military section.
The legal document will need to clarify if the British Armed Forces will allow the European Union to control what passes through there, from weapons to nuclear material. "On the part of the European Union, Spain will carry out full Schengen controls. On the part of the United Kingdom, full Gibraltar controls will continue as before." One of the main concerns of the United Kingdom was having Spanish agents controlling its airport and asking for passports from British tourists. There was even a proposal to install smoked glass partitions so they would not be seen.
"In the field of goods, the Parties have agreed on the principles underpinning the future customs union between the EU and Gibraltar, maintaining close collaboration between the respective customs authorities and eliminating goods controls. An agreement has also been reached on the principles of indirect taxation to be applied in Gibraltar, including tobacco, to avoid distortions and contribute to the prosperity of the entire region."
This point also requires waiting for the legal text to know the details. Gibraltar earns a lot of money from tobacco, and the tax differential should be raised to equalize prices in both regions to avoid differences or advantages.
Additionally, on Tuesday, the European Commission proposed the removal of Gibraltar from the European Union's list of third countries at high risk with strategic deficiencies in their anti-money laundering and counter-terrorism financing regimes (Anti Money Laundering List, AML). A document that has not yet been voted on.
The text is also unclear regarding harmonizing criteria for environmental issues. They mention including "specific cooperation on environmental matters" but do not specify the problem of discharges. The Peñón has been in breach of the directive on wastewater treatment since 1998, as determined by the European Court of Justice (ECJ). The issue lies in discharging wastewater into the Bay of Algeciras from its treatment plant.
Another issue not addressed is the landfilling in the port to reclaim land from the sea and carry out the Eastside project. This is an architectural complex built in waters whose sovereignty is in limbo, as Article X of the Treaty of Utrecht grants the United Kingdom "full and entire propriety of the town and castle of Gibraltar, together with its port, defenses, and fortresses belonging to it." It mentions the port, not the waters, so the expansion in that coastal area must be legally analyzed.
The political agreement concludes by stating that "the path is now clear for the negotiating teams to quickly finalize the full legal text and proceed with the respective internal procedures leading to the signing and ratification of the future Agreement." However, there is no mention of deadlines or further details. The final text made public yesterday is not signed by any party. Additionally, it must be translated into a legal document that has to go through the European Parliament and be subject to a vote. Experts also need to decide whether it will be an exclusively European or mixed treaty, in which case it must be ratified by the parliaments of the 27 member states.
Despite everything, Maros Sefcovic, the European negotiator, expressed confidence that it will succeed. "I believe we have found the best possible response to each of the challenges that have been put on the table in recent years," he stated.