A post-Brexit deal on Gibraltar with the EU is expected to come into action by next summer after years of fraught negotiation, the territory’s chief minister has said
GIBRALTAR – A new deal that grants Britons living in Gibraltar unrestricted European travel will reverse the “harmful consequences of Brexit”, the territory’s chief minister has said.
Fabian Picardo said the results of the post-Brexit deal, which were finalised last week, would finally come into action by the summer of 2026 after years of fraught negotiation.
“This will in effect undo the damage that Brexit did to Gibraltar and that we have been able to keep at bay with these negotiations,” he told The i Paper.
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About 96 per cent of Gibraltarians voted against Brexit in 2016 and many were shocked when a majority of Britons backed leaving the European Union.
The British Overseas territory depends on about 15,000 Spaniards who cross the border every day to work, so a hard Brexit deal would have been disastrous.
Diplomats from Britain, Spain, the EU and Gibraltar finalised the deal last Wednesday and it is undergoing legal checks before being signed, Picardo said.
The deal comes as the Government appears to be inching closer to the European Union, rejoining the Erasmus+ youth exchange programme and increasingly speaking openly about the harmful consequences of Brexit.
Sir Keir Starmer declared last month: “We must confront the reality that the botched Brexit deal significantly hurt our economy. You do not need to have a PhD in economics to know that erecting unnecessary trade barriers with your biggest trading partner will hurt growth and raise the cost of living.”
This weekend, the Health Secretary, Wes Streeting, strongly hinted that Britain could join a customs union with the EU because of the “massive economic hit” from Brexit, during an interview widely interpreted as a tilt at the leadership.
Fabian Picardo, Gibraltar’s chief minister, also said residency regulations could be tightened to stop the Rock from becoming overwhelmed by Britons (Photo: Visit Gibraltar; Gibraltar Government)
He said: “The reason why leaving the EU hit us so hard as a country is because of the enormous economic benefits that came with being in the single market and the customs union. This is a country and a Government that wants a closer trading relationship with Europe.”
That followed comments from the Deputy Prime Minister, David Lammy, who said rejoining the customs union could increase economic growth, and refused to rule out reversing Brexit.
The status of Gibraltar and how to police the border with Spain had been points of contention since Britain voted in 2016 to leave the European Union.
In June, the EU and Britain reached an agreement on the status of Gibraltar that ended years of political uncertainty.
Gibraltar residents will enjoy the unique ability to travel around the Schengen area without being subject to the post-Brexit rule that restricts Britons to staying in Europe for just 90 days in every 180.
The final deal must still be agreed by the UK and EU parliaments.
Picardo said he believed the deal would attract companies from around the world to Gibraltar.
“I think this is going to give a real economic boost to Gibraltar, to the area around Gibraltar. It is going to take the economy of the region into a new level of achievement,” he said.
“I think it will really become a very attractive place for companies from around the world to do business in Europe.”
Picardo said regulations on residency in Gibraltar may tighten up to stop the Rock from becoming overwhelmed by Britons trying to move there for its low tax, closer links to Europe and 300 days of sunshine every year.
After the announcement of the deal in June, scores of Britons applied to move to Gibraltar, prompting authorities to “pause” applications in October.
Spanish and Gibraltar police will both be stationed at the border, which has been a point of contention for some critics of the deal.
“Gibraltarian police will be in Spain as much as Spanish police will be in Gibraltar. I don’t see any problem with this,” Picardo said.
Picardo said he believes Gibraltar airport will be open for flights from across Europe or beyond. It only receives flights from the UK at present.