Europe’s Most Controversial Rock: How Brexit is Exposing Historic Anglo-Spanish Tensions over Gibraltar

Jan 20

Jan 20 Europe’s Most Controversial Rock: How Brexit is Exposing Historic Anglo-Spanish Tensions over Gibraltar

In the lead-up to Brexit, the 2016 referendum that resulted in Britain’s departure from the European Union has been at the forefront of Europe’s mind. Yet for the over 30,000 inhabitants of Gibraltar, the Brexit negotiations have brought back memories of another referendum, one which continues to strain Anglo-Spanish relations nearly two decades later. When given the choice between remaining exclusively a British Overseas Territory, or transitioning to dual ownership by Britain and Spain, the Gibraltarian answer rang loud and clear: the former option was backed by a staggering 98.5% of the population. Yet when Britain voted to leave the EU, Gibraltar’s location at Spain’s doorstep and close economic ties to Spain left many Gibraltarians wondering where to turn. It is EU law that makes the profusion of cross-border labour in this tiny area of the Mediterranean possible – without it, thousands of Spanish and Gibraltarians whose income depends on inter-border mobility would be left unemployed. It is unsurprising, then, that this little Rock became a major hurdle in the Brexit negotiation process.

The dispute between Britain and Spain, while exacerbated by Britain’s choice to leave the EU, originates three hundred years earlier with the 1713 Treaty of Utrecht, when Gibraltar was transferred from Spanish to British hands. If its strategic location for maritime trade made it a point of contention in the eighteenth century, since then Gibraltar has accumulated many other characteristics which have given rise to Spanish resentment. Taxation, in particular, has proven to be a particularly controversial issue; the favourable Gibraltarian tax regulations mean that business is drawn away from the Spanish mainland, where taxes are considerably higher. The illegal transportation of tobacco across the border is another source of Spanish irritation. In addition to major firms, affluent holidaymakers are attracted to the limited taxation and are continuing to choose Gibraltar as their preferred destination. Gibraltar’s obvious prosperity has long left Spain hankering after a more advantageous arrangement with its tiny neighbour, redirecting some of the profit to the Spanish mainland. If Gibraltar’s status as a British Overseas Territory was not enough to raise Spanish indignation, then, the Rock’s economic policies have only raised the stakes for both parties involved.

With so much to gain from sovereignty over Gibraltar, it is perhaps unsurprising that Spain shows little sign of accepting the terms of the Treaty. Spanish rhetoric in the second half of the twentieth century has suggested that Britain’s dominance of Gibraltar is a form of colonisation, and that the Rock therefore requires liberation. The United Nations seemed to support this point of view, with Gibraltar being officially designated the category non-self-governing by the organisation. In a bid to disprove these accusations, Britain decided to install a Gibraltarian Government , a tactic which failed to soothe Spanish agitation; the Government is yet to be accepted by Spain.

The late 1960s and 1970s, in particular, proved to be a time of heightened conflict over the territory, when the Spanish-Gibraltarian border was closed under Franco in Spain’s bid to force the area into submission. The results were disastrous, with the Spanish side descending into a state of financial emergency due to the shut-down on cross-border labour. On the other side, Gibraltar’s economic detachment from Spain resulted in a major lack of resources that clearly illustrated the interdependence of the two territories.

Ironically, it was Spain’s bid to enter the European Community that temporarily resolved the previous border crisis. At the time it was Britain, as a member state, that had the upper hand in the negotiations. Spain had little choice but to make some concessions, knowing that Britain had the power to deny Spain the possibility of joining the Community. In 1984 the Brussels Process was initiated as a result of the changing Spanish attitudes toward Gibraltar. In this series of talks, Britain and Spain intended to finally clear the three-hundred-year uncertainty over which nation had the claim to Gibraltar. This culminated in the referendum offering combined Spanish and British control which was so decisively declined by the Gibraltarian population.

Brexit proved to be the next hurdle in the feud over the Rock. Neither Gibraltar nor Spain were happy with the outcome of the 2016 referendum – both are economically dependent on the proliferation of cross-border labour enabled by the two territories’ membership of the European Union. Meanwhile, backed by the entire European Union and haunted by another failed referendum, Madrid was unlikely to settle for anything but an arrangement that would finally ease three hundred years of Spanish resentment. As the Brexit deadline loomed, it seemed increasingly unlikely that the two nations would be able to settle their differences.

Thankfully, in a last minute attempt at collaboration, a decision was made. The proposed solution was to integrate Gibraltar into the Schengen area, ensuring it will still be possible for Spanish and Gibraltarian workers to continue to cross the border with relative ease. The deal also accords a critical role to Spain; those who wish to enter Gibraltar from abroad must have Spanish confirmation that they are entitled to enter the Schengen area, in addition to Gibraltarian permission. For now, the arrangement is planned to last four years, after which the effectivity of the plan will be re-examined and, if found wanting, Spain and Britain will have the option of reversing the deal. Only after this initial trial period will we know if this three-hundred year dispute has reached its final destination.