The agreement marks a definitive abandonment of Spain’s claim to sovereignty over Gibraltar, a territory ceded to the United Kingdom in 1713 under the Treaty of Utrecht but whose recovery has been a constant in Spanish foreign policy for three centuries. This pact “enshrines Gibraltar’s tax regime” and turns Spain into “the only country in the world that does not control its borders.” Accepting Gibraltar’s entry into the Schengen Area and limiting Spanish police to customs control duties means Spain relinquishes any future possibility of reversing the situation, consolidating the British status quo in the territory.
This agreement legitimizes British occupation, weakens Spain’s negotiating position, and sets a dangerous precedent for other territorial disputes, such as Catalonia.
The agreement eliminates the Gibraltar fence and establishes Schengen controls managed by Spanish and European agents, but this does not equate to real control by Spain. The pact means “Spain loses the ability to control its borders,” as key decisions over the territory remain in the hands of Gibraltarian and British authorities. This lack of effective control could facilitate illicit activities, such as money laundering and drug trafficking, historically associated with Gibraltar due to its lax tax regime.
Moreover, integrating Gibraltar into the Schengen Area without a co-sovereignty agreement, as Margallo proposed during his tenure, means Spain cannot impose unilateral restrictions in the future. This limits Spain’s ability to pressure the UK in subsequent negotiations, a tool historically used to defend its interests in the region.
Although the government claims the agreement benefits the approximately 10,000 Spanish workers who cross the border daily to work in Gibraltar, this argument “does not hold up,” as a country like Spain could address the needs of these workers without ceding sovereignty. Instead of relying on Gibraltar as a source of employment, the Campo de Gibraltar should be transformed into a special economic zone with tax incentives and industrial development to reduce the region’s economic dependence on the Rock.
Furthermore, the agreement will attract British companies seeking to establish themselves in the EU post-Brexit, benefiting Gibraltar as a fiscally attractive enclave at the expense of the Spanish economy. British firms looking to set up in the EU will flock to Gibraltar, leaving Campo de Gibraltar at a competitive disadvantage.
Gibraltar has long been considered a tax haven, and although it was recently removed from the EU’s list of countries at risk of money laundering, this agreement will reinforce its status as a hub for opaque financial activities. The pact effectively “enshrines” Gibraltar’s tax regime, facilitating money laundering and other illicit activities. It provides a free pass for money laundering and drug trafficking.
The lack of stringent measures to regulate Gibraltar’s tax system will create unfair competition with Spanish businesses, particularly in the financial sector, and perpetuate Gibraltar’s image as an enclave operating outside European regulations.
Another critical issue is that the agreement clearly harms Spanish fishermen in the area by implicitly recognizing Gibraltar’s territorial waters, a claim Spain has never officially accepted. This will restrict Spanish fishermen’s access to waters near the Rock, affecting their livelihoods and creating tensions in a region already plagued by unemployment and economic hardship.
All of this has been carried out with the characteristic opacity of Sánchez’s government. An issue of such importance and nature should have been subject to parliamentary scrutiny. The government has acted unilaterally and dictatorially, ignoring a matter of national importance that requires broad parliamentary support.
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