<h6><strong>Eduardo González</strong></h6> <h4><strong>Negotiators from the European Union and the United Kingdom have successfully completed drafting the legal text of the treaty on Gibraltar's future relationship with the EU after Brexit, the European Commission confirmed to the ‘Gibraltar Chronicle’.</strong></h4> The two negotiating teams had been discussing the final text for months since the political agreement was announced on June 11. The negotiations concluded last Friday, and the Commission informed the European Council on Wednesday, December 17, according to a Commission spokesperson for EU/UK relations, speaking to the Chronicle. On June 11, the European Union (represented by European Commission Vice-President Maroš Šefčovič and Foreign Minister José Manuel Albares) and the United Kingdom (represented by UK Foreign Secretary David Lammy and Chief Minister of Gibraltar Fabian Picardo) reached a “definitive” political agreement in Brussels on “the fundamental aspects of the future Agreement between the European Union and the United Kingdom concerning Gibraltar.” The text, according to the joint statement, “safeguards the respective legal positions of Spain and the United Kingdom regarding sovereignty and jurisdiction,” guarantees the free movement of people by eliminating borders and controls between Gibraltar and the Campo de Gibraltar region, and establishes that the Spanish National Police will be responsible, on behalf of the European Union, for carrying out full Schengen controls at Gibraltar’s port and airport. For the agreement to take effect, it still needs to be formalized into a legally binding agreement. “The political agreement has been followed since June by intensive work between the negotiating teams to finalize the legal text, which was completed on December 12, 2025,” the spokesperson continued. “The text is currently undergoing legal review by the EU and the UK before we can proceed with our respective internal procedures leading to the signing and conclusion of the future Agreement,” he explained to the Chronicle. “This political agreement has been followed since June by intensive work between the negotiating teams to finalise the legal text, which was completed on 12 December 2025,” the spokesperson continued. “The text is currently undergoing legal review by the EU and the UK before we can proceed with our respective internal procedures leading to the signature and conclusion of the future Agreement,” the spokesperson added. The main objective of the future Agreement, according to the same source, “is to secure the future prosperity of the whole region.” “This will be done by removing all physical barriers to the movement of persons and goods between Spain and Gibraltar, while preserving the Schengen area, the EU Single Market and Customs Union,” he continued. “This will bring confidence and legal certainty to the lives and well-being of the people of the whole region by promoting shared prosperity,” he concluded. It is not yet known how long the legal review of the text will take or when it will be publicly available, but a legal review of this kind would normally take several weeks. Once the legal review is complete, it will proceed to ratification by the EU, which will be carried out by the European Parliament and not by the national parliaments of each member state. However, the text will be reviewed by the European Council before any ratification. For the United Kingdom, the ratification process will begin with a motion in the Gibraltar Parliament urging the UK to ratify the treaty, after which it must be approved by the British Parliament. On Tuesday, UK Foreign Secretary Yvette Cooper told the House of Commons Foreign Affairs Committee that the negotiating parties hoped to publish the legal text “as swiftly as possible” and assured that the document would be published and presented to the UK Parliament, so “there'll be plenty of opportunities to scrutinise the treaty.” For its part, the Government of Gibraltar welcomed the “positive conclusion” of the negotiations on the treaty text. “The process has now moved to the necessary technical legal scrub/reviews by all parties and the EU translation process,” a spokesperson told the Gibraltarian newspaper. “We remain committed to transparency: the final treaty will be made public and subject to the full scrutiny of the Gibraltar, UK and EU parliaments as part of the process of ratification,” the spokesperson added. The Spanish Ministry of Foreign Affairs, contacted by ‘The Diplomat’, has not yet commented. <h5><strong>The agreement</strong></h5> On June 11, José Manuel Albares, Vice-President of the European Commission Maroš Šefčovič, and UK Foreign Secretary David Lammy reached a “definitive” political agreement on “the fundamental aspects of the future Agreement between the European Union and the United Kingdom concerning Gibraltar” after meeting in Brussels in the presence of Gibraltar’s Chief Minister, Fabian Picardo. According to the joint statement, the text “safeguards the respective legal positions of Spain and the United Kingdom regarding sovereignty and jurisdiction,” guarantees the free movement of people by eliminating borders and controls between Gibraltar and the Campo de Gibraltar region, and establishes that the Spanish National Police will be responsible, on behalf of the European Union, for carrying out full Schengen controls at Gibraltar’s port and airport. For the agreement to take effect, it still needs to be formalized into a legally binding agreement. Last October, Albares explained to the Congress of Deputies that the agreement “includes provisions relating to the military base,” under which “Spain will, for the first time, have access to complete information on the goods and people arriving there to ensure that the Schengen acquis and Customs Union also apply to the base.” Furthermore, he continued, “Schengen controls upon arrival and departure through the port and airport of Gibraltar will be carried out by the Spanish Police in accordance with the rules applied at any other external Schengen border.” “Another historic aspect of the agreement, which will also contribute to improving connectivity in the Campo de Gibraltar region, is the use of the airport, which will be opened to connections with other Spanish airports and those of the rest of the European Union, and will establish a joint management system through the creation of a joint venture in which Spain holds a 50% stake,” he added. The text also provides for “the elimination of all physical barriers, while protecting the integrity of the Union's single market and fostering prosperity in the area.” “The movement of goods,” he assured, “will be by land, subject to strict conditions and always after customs clearance has been completed at Spanish customs posts, meaning that goods destined for Gibraltar will have already passed through.” “Spanish authorities will carry out all customs procedures at the designated customs posts,” he emphasized. The agreement, the minister continued, establishes the creation of a financial instrument, to which the EU, Spain, the United Kingdom, and Gibraltar will contribute, to promote cohesion, support employment, and reduce inequalities in the area. “Environmental issues will have a specific chapter, particularly regarding waste and spill management.” According to Albares, the agreement will allow for a phased harmonization of tax rates with European standards, including those for tobacco, which will be extended to excise taxes on fuels and alcoholic beverages. “Gibraltar will implement an indirect tax similar to Spain’s VAT and never lower than the European minimum,” set at 15 percent. “In other words, the levels of indirect taxation in Gibraltar will be aligned with European regulations from the moment the agreement comes into force, to guarantee a level playing field and avoid market distortions,” he stated. “Until now, some items were not taxed or were taxed at only six percent,” he noted.
