The Gibraltar Agreement

On June 11, 2025, during a meeting in Brussels, an agreement on Gibraltar was signed between European Commissioner Maros Sefcovic, Spanish Minister José Manuel Álvarez, British Minister David Lammy, and Gibraltar’s Chief Minister Fabián Picardo.

This pact between Gibraltar and Spain represents the resolution of one of the last major Brexit-related issues in the region, removing barriers, coordinating taxation, and strengthening trilateral cooperation. It preserves British sovereignty while opening a new phase of functional integration with Spain and the European Union.

What does this agreement include?The Gibraltar agreement covers several key points:

The first is the elimination of the border fence (“la Verja”), meaning that all land controls between Gibraltar and La Línea (Spain) are removed, facilitating the daily crossing of around 15,000 people.

A dual control system will be implemented at the port and airport, in which Spain (Schengen) manages access to the Schengen Area, while the UK/Gibraltar maintains its immigration and public order controls.

Integration between Schengen and the Customs Union will occur, meaning that Gibraltar will de facto join the Schengen Area and move toward a customs union with the EU; this will streamline goods trade.

Regarding fiscal and indirect tax matters, new principles have been agreed upon (taxes on tobacco, tax convergence, etc.), avoiding distortions or the so-called dumping (commercial practice that exports products at a price lower than that sold in the domestic market of the country of origin or even below production cost).

The treaty also establishes expanded cooperation between the parties, including visas, justice, police control, employment, environment, state aid, anti-money laundering, transport, and regional cohesion.

Regarding sovereignty, the United Kingdom retains sovereignty over Gibraltar, although it accepts Spanish presence at certain entry points, such as the area designated for Schengen. Spain formally maintains its claim over Gibraltar and the isthmus, though it regards the current fence as a disputed zone rather than an international border. It appears Spain has adopted a pragmatic strategy: prioritizing functional normalization and economic development in the Campo de Gibraltar over asserting sovereignty.

The pact seeks legal and economic stability for cross-border workers residing in both the Spanish region and Gibraltar.

The new British Labour government highlights the rebuilding of European ties; however, conservative sectors have criticized what they consider a concession. In Spain, criticisms have focused on a lack of information.

This political agreement must first be formalized in a definitive legal text that passes ratification processes in the parliaments of Spain, the United Kingdom, Gibraltar itself, and the European Union, meaning we are still at the beginning of the process.

The pact is seen as an effort to build “an area of shared prosperity,” with the European Union playing a central role and potentially laying the groundwork for cosmopolitan solutions to the longstanding sovereignty dispute. From Brussels, the agreement is interpreted as a victory for the EU, demonstrating its ability to arbitrate and generate innovative solutions in post-Brexit contexts.

In conclusion, the Gibraltar pact appears to offer a combination of diplomatic gains, legal security, and economic opportunities, especially for border regions in Spain. However, while functional cooperation is prioritized, the sovereignty conflict remains unresolved, leaving it open for future debates.