Foreign Secretary David Lammy strikes ‘historic agreement’ with EU for fluid border that protects British sovereignty while avoiding catastrophic hard border that threatened Rock’s economy
Britain has secured a historic post-Brexit deal for Gibraltar that will keep borders flowing freely with Spain, avoiding economic disaster for the Rock’s 33,000 residents and 15,000 daily cross-border workers.
Foreign Secretary David Lammy sealed the breakthrough agreement in Brussels today after holding emergency talks in Gibraltar, finally resolving the last major unresolved issue from Brexit after years of deadlock.
The deal ensures no passport checks for people crossing between Gibraltar and Spain, protecting the livelihoods of thousands while maintaining British sovereignty over the strategic territory.
Gibraltar’s Chief Minister Fabian Picardo hailed the moment on social media, declaring: “An agreement for the future relationship between the EU and the UK in relation to Gibraltar is now a reality. It is a historic agreement.”
Four Years of Brexit Limbo Finally Over
The agreement ends four years of uncertainty that has hung over Gibraltar since Britain left the EU in 2020, with the territory excluded from the original Brexit trade deal and left in diplomatic limbo.
Without today’s deal, Gibraltar faced economic catastrophe when the EU’s new Entry/Exit System launches later this year, which would have created a “hard border” requiring every passport to be checked – potentially creating hours-long queues.
The Foreign Office warned this would have cost Gibraltar’s economy “hundreds of millions a year” and placed massive pressure on UK taxpayers to provide fiscal support.
European Commission President Ursula von der Leyen welcomed the agreement, posting on X: “It safeguards the integrity of Schengen and the Single Market, while ensuring stability, legal certainty and prosperity for the region.
What the Deal Means
Under the historic agreement hammered out by Lammy:
✓ NO BORDER CHECKS – People can cross freely between Gibraltar and Spain without passport controls
✓ SOVEREIGNTY PROTECTED – A specific clause makes clear the treaty does not impact British sovereignty over Gibraltar
✓ DUAL CONTROLS AT AIRPORT – Eurostar-style system with Gibraltar and Spanish officials conducting joint checks on air arrivals
✓ GIBRALTAR KEEPS CONTROL – Immigration and law enforcement remain exclusively under Gibraltar’s authority
✓ SPANISH OFFICIALS IN GIBRALTAR – Similar to French police at London’s St Pancras, Spanish officers will ensure Schengen compliance
✓ NO GOODS CHECKS – Bespoke customs model avoids onerous checks on products crossing the land border
✓ MILITARY AUTONOMY – Full operational independence for UK military facilities that protect vital trade routes
✓ EU FLIGHTS RESUME – Aircraft can operate from Gibraltar to EU destinations, boosting connectivity and prosperity
15,000 Workers Saved From Border Chaos
The deal is a lifeline for the approximately 15,000 people – more than half of Gibraltar’s entire workforce – who cross the border with Spain every single day.
These workers, many of them Spanish nationals who keep Gibraltar’s economy running, faced the nightmare prospect of hours-long queues if a hard border had been imposed.
Currently, Gibraltar residents can cross using simple residence cards without passport stamps, while Spanish citizens use government ID cards – a system that will now continue.
Lammy’s Dawn Dash to Brussels
The Foreign Secretary’s whirlwind diplomatic mission saw him fly to Gibraltar for urgent talks with Chief Minister Picardo and his cabinet, along with opposition leaders and business representatives.
After securing unanimous backing from Gibraltar’s government, Lammy and Overseas Territories Minister Stephen Doughty immediately flew to Brussels for the crucial negotiations with EU and Spanish officials.
A Foreign Office source said: “We’re working to secure an agreement that works for the people and businesses in Gibraltar. An agreement that will protect British sovereignty, supports Gibraltar’s economy and allows businesses to plan for the future.
Years of Failed Talks
The breakthrough comes after years of frustrating negotiations that began in 2021 under the previous Conservative government but repeatedly stalled over sovereignty concerns.
Spain has maintained its claim to Gibraltar since it was ceded to Britain in 1713, making any border arrangements politically explosive in Madrid.
Just last month, Spanish Foreign Minister José Manuel Albares had warned that resolving Gibraltar was essential for any UK-EU reset, telling the BBC: “We need to solve the issue of Gibraltar in order to have a full European Union-UK relationship.
The Schengen Solution
The ingenious solution effectively makes Gibraltar an associate member of the EU’s Schengen free-movement zone – allowing barrier-free travel while maintaining British control.
This mirrors arrangements at other sensitive borders, with Spanish officials operating in Gibraltar similar to how French border police work at London’s St Pancras Eurostar terminal.
Crucially, Gibraltar’s authorities retain complete control over immigration and law enforcement, with Spanish officials only responsible for Schengen compliance.
Military Base Protected
The deal also resolves concerns about Gibraltar’s strategic military importance, with the agreement guaranteeing “full operational autonomy” for UK forces.
The Royal Air Force base at Gibraltar airport – a key facility for protecting Mediterranean trade routes – will remain entirely under British control despite the new border arrangements.
Brexit’s Last Piece Falls Into Place
Today’s agreement finally completes Britain’s post-Brexit architecture, resolving the last major outstanding issue from the UK’s departure from the EU.
It marks a significant diplomatic victory for Labour after inheriting what officials described as a “situation which left Gibraltar’s economy and way of life under threat.
The deal also clears the way for Prime Minister Keir Starmer’s broader reset of UK-EU relations at next week’s summit with European leaders.
Gibraltar Celebrates
In Gibraltar, where 96% voted to remain in the EU during the 2016 Brexit referendum, the agreement was met with relief and celebration.
The tiny territory of just 2.6 square miles has lived under the shadow of potential economic collapse since Brexit, with businesses unable to plan for the future.
Now, with a permanent solution secured that protects both sovereignty and prosperity, Gibraltar can finally look forward with confidence.
As one government source put it: “This agreement provides a practical solution for the unique situation faced by the people of Gibraltar whose livelihoods depend on a fluid border.
The deal proves that even the most intractable Brexit problems can be solved with political will – and just in time to save Gibraltar from disaster.
