Spain threatens to hold up Brexit transition deal over Gibraltar veto

Spain was last night said to be demanding fresh assurances over its Gibraltar ‘veto’ as the Brexit transition deal became subject to a new round of last minute haggling on Tuesday, senior EU sources have revealed.

The Spanish intervention came after a press conference on Monday in which David Davis, the Brexit secretary, said that the text of the transition deal “includes Gibraltar”, without making reference to the veto.

EU sources said that Spain had been left “furious” by the remarks which they felt appeared to question the validity of a ‘veto’ handed to Spain last year by EU leaders.

Under a deal with Madrid, the Brexit withdrawal agreement and transition deal will not apply to Gibraltar unless and until the Spanish government agrees.

The Spanish side are understood to be requesting that a footnote referencing their veto is put into ‘green’ text, indicating that it has been agreed by all sides.

The UK and Gibraltar governments have both declared the veto to be ‘illegal’ and have threatened to contest its validity in the courts if it is used to hold up the Brexit negotiation.

EU sources said they expected the issue to be resolved, but the wrangling points to the sensitivity of the issue. “Talks are ongoing,” a second senior EU source said.

On Tuesday Donald Tusk the European Council President was unable to confirm that all 27 EU member states would be prepared to accept the text agreed by Mr Barnier and Mr Davis on Monday.

In a letter inviting EU leaders to the summit, he said that he would still need a “couple more hours” to consult with member states before he could welcome the transition agreement, in a veiled reference to the Gibraltar question. 

Last December Mrs May issued a categorical assurance to MPs that she would not leave Gibraltar behind, handing Spain potentially huge leverage in its longstanding negotiations on ‘The Rock’.

Spain’s foreign minister has said Madrid will not use its Brexit leverage to enforce its longstanding claims of sovereignty over Gibraltar but is seeking potentially painful concessions, such as joint control of its airport.

Gibraltar was ceded to Britain at the Treaty of Utrecht in 1713. In 2002 Gibraltar rejected a proposal for joint UK-Spanish sovereignty by a majority of 98.9 per cent against.

Alfonso Dastis, the Spanish foreign minister, said that Madrid was seeking a pragmatic agreement that prioritised the rights of cross-border workers and addressed other "irritating problems" such as the use of Gibraltar's airport, fiscal transparency and tobacco smuggling in the area.

Speaking to a Spanish joint parliamentary commission on the European Union, he said that Gibraltar's airport was not on land ceded to it by Spain but on the disputed Isthmus, and that an agreement on shared use would benefit economic activity in the area. "If that is not possible, then we'll see what we'll do," the foreign minister added. 

Spain was not renouncing its ultimate objective of recovering sovereignty over the Rock, he said, but did not want the negotiation with the UK to "be hostage to the question of Gibraltar".

Mr Dastis said the British government was proving "receptive and constructive" in its approach, suggesting this was "because they know what is at stake", and that Spain was hopeful of an agreement that was beneficial to all.

But he had strong words for Fabian Picardo, Gibraltar's chief minister, whom he warned against making threats that could imperil negotiations.

Mr Dastis said: "The government of Gibraltar has reacted by threatening legal actions and other things like the rescinding of contracts of the workers who cross La Verja (The Fence). This of course is not my rhetoric, if they do it then they are the ones that put the future of the relationship in danger."

He added: "I have my doubts that Gibraltar could survive without the thousands of workers that contribute every day to the actions and economy of Gibraltar."