EU Member States give green light to Gibraltar agreement with the United Kingdom

Ane Barcos The Committee of Permanent Representatives of the EU Member States (COREPER) approved the texts of the agreement between the European Union and the United Kingdom on Gibraltar this Wednesday, as well as the decisions regarding its signature and provisional application. Formal adoption will take place once the reviews by the Council's linguistic legal experts are completed, with the expectation that it will enter into provisional application on July 15, 2026. According to the Minister of Foreign Affairs, José Manuel Albares, the agreement is “a success for Spain and for Europe” and provides “certainty for 300,000 Andalusians in the Campo de Gibraltar.” The agreement on Gibraltar completes the legal framework for relations between the European Union and the United Kingdom established by the Trade and Cooperation Agreement, signed in 2020 and in force since 2021, to which Gibraltar is not a party. In mid-December, negotiators from the European Union and the United Kingdom finalized the legal text of the treaty on Gibraltar's future relationship with the European Union after Brexit. The agreement aims to ensure the region's prosperity by removing physical barriers to the movement of people and goods between Spain and Gibraltar, while maintaining the Schengen Area, the single market, and the European Union's customs union. The Cypriot Presidency of the Council of the European Union stated on Wednesday that the work carried out on this treaty has achieved a milestone in relations between the European Union and the United Kingdom and established a foundation for a future partnership. According to Cyprus' Permanent Representative to the European Union, Christina Rafti, the agreement will have implications for the citizens of the region and for the Union as a whole. The Treaty The European Commission published the text of the treaty on Gibraltar on February 26. It provides for the removal of the border fence and the elimination of passport controls between the two territories. Spain will assume Schengen controls at Gibraltar's airport and port, as well as the final decision on residence permits. The agreement regulates the movement of goods through harmonized controls. Spain will carry out customs controls on goods entering Gibraltar, and baggage checks will be applied to travelers bound for the European Union and Gibraltar. In tax matters, the treaty establishes convergence in indirect taxation of goods. Gibraltar will implement a tax equivalent to VAT, which will start at 15% upon entry into force and will be adjusted over a period of three years, with specific provisions for tobacco. The text includes adaptation to European Union environmental regulations and the creation of a joint environmental impact assessment mechanism. It also includes a financial mechanism for job training, social measures, coordination on social security matters, and provisions for cross-border workers. “A success for Spain and for Europe” Following the approval of the agreement by the member states, the Spanish Minister of Foreign Affairs, European Union and Cooperation, José Manuel Albares, stated that the agreement constitutes “a success for Spain and for Europe” and “certainty for 300,000 Andalusians in the Campo de Gibraltar.” “The EU member states meeting in Brussels have agreed to give the green light to the historic Agreement regarding Gibraltar. The expected implementation date: July 15. Certainty for 300,000 Andalusians in the Campo de Gibraltar. A success for Spain and for Europe,” the minister wrote on social media. After the European Commission published the text in February, the governments of Spain and the United Kingdom indicated that the treaty maintains their respective positions on the sovereignty of Gibraltar. The text establishes that the elimination of physical barriers to the movement of people and goods and cooperation between the parties will be implemented without prejudice to the sovereignty and jurisdiction of either country, and that the agreement does not modify Spain's legal position. Furthermore, the treaty includes a chapter on sovereignty stipulating that any supplementary agreement, measure, or action arising from it will not affect the legal positions of the United Kingdom and Spain, nor will it serve as a basis for assertions or denials of sovereignty, including in legal proceedings. Government of Gibraltar For its part, the Government of Gibraltar has welcomed the approval of the agreement and emphasized in a statement that “this collective support provides greater certainty and authority to the agreed framework, and reflects the shared commitment of the entire European Union to implement these new provisions in a lasting and orderly manner.” Furthermore, according to the Gibraltar government, “the new date provides certainty and additional time to prepare, allows us to know exactly when the new rules will come into effect,” and “gives Gibraltar businesses, which must adapt to the new customs procedures, more time to adjust and refine the new mechanisms.” “The Government has also received assurances that the new European Entry/Exit System (EES), which comes into force on April 10, will not apply to Gibraltar residents, regardless of the color of their birth certificate,” the statement continues. “I am very pleased that the Treaty has now received the unanimous support of all 27 EU Member States,” said Chief Minister Fabian Picardo. “Today’s confirmation is positive because it provides Gibraltar with something that both citizens and businesses have long desired: clarity and time,” he continued. “Combined with the guarantees that Gibraltar residents will be exempt from the EEA at the Gibraltar-Spain border, this is a very, very positive step forward,” he concluded.

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