The EU and the UK reached a breakthrough agreement on Gibraltar, promising to resolve years of post-Brexit uncertainty surrounding the British Overseas Territory, which shares its only land border with Spain.
The “conclusive political agreement” covers the core elements of a future legally binding treaty, according to a joint statement on Wednesday.
The deal was announced after high-level talks in Brussels between EU Trade Commissioner Maros Sefcovic, Spanish Foreign Minister Jose Manuel Albares, UK Foreign Secretary David Lammy, and Gibraltar Chief Minister Fabian Picardo.
Gibraltar, a strategic outpost at the southern tip of the Iberian Peninsula, has been a longstanding point of friction between London and Madrid.
Though it remained under British control after the UK’s departure from the EU in 2020, Gibraltar was excluded from the Brexit trade deal. This left the territory’s roughly 38,000 residents – 96 percent of whom voted against Brexit – and thousands of cross-border workers living in Spain in a legal limbo.
Under the agreed framework, dual border checks will be established at Gibraltar’s airport and seaport, jointly managed by EU and British authorities. As a result, controls at the land border with the Spanish town of La Linea will be removed on both sides.
The parties also agreed on visa and permit systems, as well as enhanced cooperation between law enforcement agencies.
In terms of trade, the deal outlines principles for a future customs union and indirect taxation to be applied in Gibraltar, including on tobacco – long a source of tension due to pricing differences.
Further provisions include commitments on labour rights, environmental protections, state aid, taxation, anti-money laundering and transport, along with protections for frontier workers and cross-border social security coordination.
Officials said the path is now clear to finalise the legal text and begin the ratification process. In the statement, the parties expressed confidence that the deal would bring legal certainty, stability, and prosperity to communities on both sides of the border.
