Gibraltar Fears 'Done Deal' Between The UK And Spain

by Ulrika Lomas, Tax-News.com, Brussels

06 December 2001

A Gibraltarian newspaper has expressed fears that despite appearances, the talks between the United Kingdom and Spain herald a 'done deal', and that issues of sovereignty, internal self-government, and the UK defense interest have already been decided in the absence of Peter Caruana, Gibraltar's Chief Minister.

According to Panorama, Britain and Spain are engaged in the implementation of the Brussels Agreement, formulated by former Spanish and British Foreign Ministers Don Fernando Moran Lopez and Geoffrey Howe, and intended to smooth out any wrinkles in the relationship between the two countries in the interests of EU harmony.

The newspaper claims that although UK Foreign Secretary Jack Straw, and his Spanish counterpart Josep Pique would like Mr Caruana to attend future talks, this would only be in the interests of lending legitimacy to the process, and would not affect the eventual outcome of the talks.

Panorama claims that the UK Foreign Office has given a misleading impression of its position on the Gibraltar issue, and says that although Peter Hain has promised that there is no question of the British government handing over sovereignty to Spain: 'this does not mean that they are not prepared to do so, even though they know the contrary Gibraltar position.' The newspaper believes that despite this promise, arrangements being discussed now may very well result in a dilution of sovereign control.

In addition to discussing power-sharing arrangements with Spain, Joe Garcia, writing for Panorama, suggests that British officials have accepted the idea that Gibraltar's EU status is unacceptable, and intend to replace it. The report also predicts that: 'Gibraltar will have to join the EU Customs Union and impose EU tariffs and eliminate its own separate range of import/export duties. VAT will also have to be introduced.' However, the newspaper warns that: 'the abandonment by Gibraltar of its special EU entry status will cause severe distortions to its economic base.'

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