Agreement protects sovereignty and economic security of Gibraltar
Source: gov.uk (2025-06-10)

Political agreement reached that will protect British sovereignty, UK military autonomy and secure Gibraltar’s economic future.

UK, alongside the Government of Gibraltar, reaches a political agreement with the EU which will protect British sovereignty, UK military autonomy and secure Gibraltar’s economic future

agreement resolves the last major unresolved issue from Brexit, avoiding the need for checks on people and goods crossing the Gibraltar-Spain border to support prosperity in the region

Chief Minister of Gibraltar, Fabian Picardo, central to the agreement as Foreign Secretary visits Gibraltar this morning

The UK government has today [11 June] reached a political agreement with the EU which will secure Gibraltar’s economy, provide certainty for people and businesses in Gibraltar and protect British sovereignty.

This government inherited a situation which left Gibraltar’s economy and way of life under threat. Gibraltar was not included in the UK-EU Trade and Cooperation Agreement negotiated by the previous UK government following Brexit. Instead, the previous government began negotiations in 2021 to reach a deal which has remained unresolved until today.

Approximately 15,000 people – over half of Gibraltar’s workforce – cross the land border between Spain and Gibraltar every day. Without a new agreement, the EU’s incoming system of entry and exit controls would have introduced a ‘hard border’ under which every individual passport was checked.

Today’s agreement provides a practical solution to avoid the need for onerous checks and long delays at the border which would have proved ruinous for Gibraltar’s economy – costing hundreds of millions a year and placing pressure on the UK taxpayer for fiscal support, underlining the government’s commitment to economic stability under the Plan for Change (https://www.gov.uk/missions).

The Chief Minister of Gibraltar, Fabian Picardo, has been central to the negotiations from the start and today’s agreement has his full backing.

Foreign Secretary David Lammy said:

This government inherited a situation from the last government which put Gibraltar’s economy and way of life under threat. Today’s breakthrough delivers a practical solution after years of uncertainty.

Alongside the Government of Gibraltar, 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.

I thank the Chief Minister and his Government for their tireless dedication throughout the negotiations. The UK’s commitment to Gibraltar remains as solid as the Rock itself.

Chief Minister of Gibraltar Fabian Picardo said:

I’m delighted we have finalised a conclusive political agreement which will bring legal certainty to the people of Gibraltar, its businesses and to those across the region who rely on stability at the frontier.

I have worked hand in glove with the UK government throughout this negotiation to deliver the deal Gibraltar wants and needs – one that will protect future generations of British Gibraltarians and does not in any way affect our British sovereignty.

Now is the time to look beyond the arguments of the past and towards a time of renewed cooperation and understanding. Now the deal is done, it’s time to finalise the Treaty.

As the only UK overseas territory which shares a border with the Schengen Area, today’s political agreement provides a practical solution for the unique situation faced by the people of Gibraltar whose livelihoods depend on a fluid border.

Under the agreement, there will be:

a clause agreed by all sides which makes explicitly clear that the final Treaty does not impact sovereignty

a fluid border between Gibraltar and Spain, without checks on people crossing

dual border control checks for arrivals by air at Gibraltar airport, carried out by Gibraltar and Spanish officials. Immigration and law and order in Gibraltar will remain the exclusive responsibility of Gibraltar’s authorities. 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

a bespoke goods and customs model for products entering Gibraltar across its land border, avoiding the need for onerous checks

full operational autonomy of the UK’s military facilities in Gibraltar, which play a vital role in protecting regional security and important trade routes

the opportunity for flights to operate from Gibraltar airport to EU destinations, increasing Gibraltar’s connectivity to the continent and improving its prosperity

The agreement clears the way for finalisation of a UK-EU Treaty Text on Gibraltar, which all parties have committed to complete as quickly as possible.

View the joint statement: UK-EU Agreement in Respect of Gibraltar: joint statement (https://www.gov.uk/government/news/uk-eu-agreement-in-respect-of-gibraltar-joint-statement).

Background

Gibraltar is a UK overseas territory located on the southern tip of the Iberian Peninsula that was formally ceded to the United Kingdom from Spain in 1713 under the Treaty of Utrecht

the people of Gibraltar expressed their overwhelming desire to remain British in referenda in 1967 (99%) and 2002 (98%)

negotiations for a UK-EU Treaty on Gibraltar began in October 2021 under the previous UK government

the final Treaty will be subject to ratification by the UK and Gibraltar parliaments

the UK Strategic Defence Review 2025 (https://www.gov.uk/government/publications/the-strategic-defence-review-2025-making-britain-safer-secure-at-home-strong-abroad) sets out the importance of maintaining the UK military presence in Gibraltar, including for maritime force protection operations, upholding the sovereignty of British Gibraltar Territorial Waters, as well as providing a base at a strategic location at the western entrance to the Mediterranean to provide critical support to UK – and allied – military objectives

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