FRESH TALKS: Michel Barnier meets Pedro Sanchez in Madrid

SPAIN has put forward a set of fresh demands over Gibraltar amid Brexit negotiations.

Madrid wants the EU to pen a new chapter about the Rock in the Withdrawal Agreement which is believed to be around 85% settled.

The Spanish government is seeking a special Brexit deal with the Rock over long-standing issues such as tax evasion, environmental concerns, smuggling and cross-border workers.

It comes after EU chief negotiator, Michel Barnier met with Spanish prime minister, Pedro Sanchez this week and stated he would offer ‘all his support to Spain’ regarding its new requirements.

In return Spain has promised to stop pushing for sovereignty over Gibraltar for the rest of the Brexit talks.

Madrid hopes EU chiefs will produce an annex to the Brexit deal including tighter regulations that stop companies and individuals from tax evasion by seeking residency on the Rock, reported El Pais.

Gibraltar MEP Ashley Fox told The Sun: “So long as talks continue in goodwill and respect the Rock’s sovereignty we can reach a deal on time that will benefit both Spain and Gibraltar.”

MPs are also looking to clamp down on tobacco smuggling by raising prices in the British territory to match Spanish prices.

Some 600,000 cigarette packets were seized in Spain last year marking a 158% year on year increase.

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