Good relations with EU states are essential for a reset. But concessions to Spain over Gibraltar would risk reopening Brexit wounds
Starmer needs to get a deal agreed on Gibraltar border next month but could find it hard to reach a solution that satisfies everyone’s visit to Brussels last week was billed as a key step in his drive to reset relations with theand achieve a softer Brexit. However, in readouts from both sides, one critical issue was not mentioned: finding a solution to the ticking time bomb inmay only have a population a third of the size of Hemel Hempstead.
Starmer needs to avoid this from happening by getting a lasting solution for Gibraltar over the line. A deal is needed for its own sake, but also because of the wider ramifications of any failure on this issue.Gibraltar currently doesn’t have VAT. The Spanish government has said that for a deal to be struck, it would have to move in line with EU taxation. For Gibraltar, Spain imposing levels of tax is an unacceptable loss of sovereignty.
There are also worries about the future sovereignty of Gibraltar. Despite being a British territory, Spain has long claimed that parts of Gibraltar are rightfully Spanish andFor citizens of Gibraltar, this complicates the post-Brexit question of who, exactly, should determine who comes in and out of the territory.The UK and EU agree that the sovereign integrity of both Spain and Gibraltar should be respected and that the border between the two should remain open.
This makes life difficult for incumbent PM Pedro Sanchez, who leads a coalition government with a left-wing bloc, despite his Socialist Workers’ Party finishing second to the PP at the 2023 Spanish election. Unstable politics is always fertile ground for populists, so with Vox agitating on Gibraltar, both government and opposition have limited room for flexibility.
But Starmer also needs to keep in mind his relations with the EU and desire for a wider reset, and the Gibraltar situation could it affect it in three ways.
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