Gibraltar Offered 'Bribe' To Submit To Spanish Sovereignty

by Jason Gorringe, Tax-News.com, London

19 March 2002

According to reports released following this weekend's European Union summit in Barcelona, the EU has formulated plans to offer Gibraltar a £32 million 'bribe' if it agrees to surrender British sovereignty.

The UK Telegraph revealed this weekend that the EU regional investment fund financing, which aims to create 'the most important commercial port in the Mediterranean', was endorsed by EU member states in private talks on Saturday.

The plan was drawn up by Britain and Spain during talks ahead of the summit, but the European Union has made it clear that it would support Spain, which currently holds the Presidency of the European Council, in refusing to offer the lucrative boost to the Rock's economy if it fails to accept Spanish sovereignty.

Speaking to the Telegraph on Saturday, regarding the UK Government's promise to shut down the low tax jurisdiction's ability to offer tax breaks to investors if it refuses to cede to Anglo-Spanish demands, an unnamed British official commented that:

'Gibraltar needs to recognise that it has no viable economic future unless it accepts these proposals. We are talking about millions of pounds, which will give Gibraltar a secure and prosperous future, but there is no way that either Spain or the EU would countenance the investment until agreement is reached over sovereignty.'

However, the proposals have been roundly rejected by the Government of Gibraltar, which has slammed the EU for failing to adhere to its own principles. Speaking at the weekend, the Government's representative in the UK, Albert Poggio, argued: 'This is not about money, but about principles and democracy,' adding that: 'Gibraltar has a strong economy. If European Union assistance is available, however, it should be available as of right, irrespective of any other proposals.'

Gibraltarian Chief Minister Peter Caruana responded to the news by calling for a 'massive turnout' at the mass demonstration opposing the 'done deal' Anglo-Spanish talks, which was held yesterday.

He reiterated on Sunday that the jurisdiction's sovereignty is not for sale, and said that the Government of Gibraltar: 'deeply regrets the EU Council's failure to refer to the wishes of the people of Gibraltar in respect of the comprehensive agreement that it encourages the the UK and Spain to reach before the summer. '

He further accused the European Union, arguing that: 'This is not compatible with the EU's own inclination to preach adherence to democratic principles outside the EU.'

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