A BREAKTHROUGH has been reached in negotiations in Brussels that will see major changes for Gibraltar.
The border with Spain will effectively disappear, replaced by a ‘dual Gibraltar-Schengen check’ system at the airport and port.
Chief Minister Fabian Picardo emerged from the meeting on Wednesday afternoon with what is being called a ‘conclusive political agreement’ on Gibraltar’s post-Brexit future.
The deal, still in its formative stages, centres on a compromise designed to solve the sovereignty headache that has seemed an interminable impasse in negotiations for years.

The UK government said in a statement that it has ‘alongside the Government of Gibraltar, reached a political agreement with the EU which will protect British sovereignty, UK military autonomy and secure Gibraltar’s economic future.’
According to a statement released by the Gibraltar government, there will be two sets of border controls working side by side.
At Gibraltar airport and port, arriving passengers will face dual processing from officers from both the Rock and the Schengen.
Spanish authorities will be responsible for conducting full Schengen area checks for EU purposes, whilst Gibraltar officials will continue their own border controls as are done today.
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“Immigration and law and order in Gibraltar will remain the exclusive responsibility of Gibraltar’s authorities,” the UK government said.
“Spanish officials will be responsible for ensuring the integrity of the Schengen area, in a model similar to French police operating in London’s St Pancras station.?”?
At the land border itself, ‘all physical barriers, checks and controls on persons and goods circulating between Spain and Gibraltar will be removed.’
The daily queues and checks that affect 15,000 cross-border workers and countless Gibraltar residents are set to vanish.
“The last wall of continental Europe will finally disappear with this historic deal,” said Spanish Foreign Minister Jose Manuel Albares
Gibraltar will effectively join a customs union with the EU, meaning goods can flow freely without the checks and paperwork that would have been necessary without a deal.
Spanish lorries delivering to Gibraltar supermarkets and Gibraltar companies exporting to Europe will both be able to move freely.
The announcement is still some way short of a treaty, and further technical discussions will need to take place before all parties are ready to sign a historic deal.
“The way is now clear for negotiating teams swiftly to finalise the full legal text and proceed with the respective internal procedures leading to the signature and ratification of the future agreement,” the statement reads.
UK Foreign Minister David Lammy said: “We have a reached an agreement which protects British sovereignty, supports Gibraltar’s economy and allows businesses to plan for the long-term once again.”
The UK government underlined that deal secures ‘full operational autonomy of the UK’s military facilities in Gibraltar’, while providing the ‘opportunity for flights to operate from Gibraltar airport to EU destinations, increasing Gibraltar’s connectivity to the continent and improving its prosperity.?’
As well as the border, there has been progress on tobacco and other matters of trade.
New indirect taxation arrangements promise to ‘avoid distortions’ caused by the differing tax regimes between Gibraltar and Spain.
The deal covers level playing field commitments on state aid, taxation, labour standards, environmental protection and anti-money laundering measures.
The read out states that specific provisions will be put in place to protect frontier workers’ rights and social security coordination.
Meanwhile, a financial mechanism will be established to promote cohesion and support training and employment across the region, and environmental cooperation measures are also included in the agreement.
The arrangement preserves the Schengen area, EU Single Market and Customs Union whilst maintaining the existing – and conflicting – sovereignty positions.
The agreement states it is ‘without prejudice to the respective legal positions of Spain and the United Kingdom with regard to sovereignty and jurisdiction.’
Officials said the main objective is to secure future prosperity for the whole region by promoting shared prosperity and constructive relations between Gibraltar and Spanish authorities.
Negotiating teams will now work to finalise the full legal text before proceeding with internal procedures for signature and ratification.
The breakthrough follows intensive negotiations building on progress made in political meetings during 2024, with technical teams working to resolve outstanding issues in recent months.
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