Speculation Continues Over Gibraltar Sovereignty Talks

by Jason Gorringe, Tax-News.com, London

03 July 2002

There is increasing speculation in the Gibraltarian media over the stalled Anglo-Spanish talks on the Rock's sovereignty, with one newspaper predicting that the two countries will put forward a 'half-cooked' deal following a formal meeting on July 12.

Reporting on the situation on Tuesday, the Panorama news service suggested that although the UK and Spain have been unable to reach a definitive agreement on the low tax jurisdiction's fate, they may announce the points upon which consensus has been reached later this month, leaving the more contentious issues until some point in the future.

The newspaper revealed that points of agreement between the two countries include: the need for increased freedom of movement at the Gibraltar-Spain frontier, the maintenance of the 'British way of life' in Gibraltar, EU membership for the territory, and the retention of British passports with the option to apply for Spanish documents if desired.

'The emerging plan is for these and other points of accord to be made known on July 12 even if the deal is not struck and there is no hope of it being struck in the foreseeable future. July 24 is the time limit before parliament in London goes on its summer recess to October,' Panorama reported.

However, last Wednesday's informal meeting between UK Foreign Secretary, Jack Straw, and his Spanish counterpart, Josep Pique failed to bring progress on the three key disputed areas, namely the Spanish refusal to consider the option of permanent joint sovereignty, Madrid's refusal to recognise the results of any referendum in Gibraltar, and a dispute over the future sovereignty of the British military base on the Rock.

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