Brexit Gibraltar wrangle

Spain’s prime minister warned on Tuesday that Madrid would vote against the Brexit deal agreed between London and Brussels if it does not guarantee Madrid’s veto over Gibraltar’s future status.

Britain’s Prime Minister Theresa May is due to sign a treaty with EU leaders to leave the bloc on Sunday, but Spain’s warning over the contested British territory on Spain’s southern tip may add another complication.

“As Spain, we can’t conceive that what will happen with the future of Gibraltar will depend on a negotiation between Britain and the European Union,” Prime Minister Pedro Sanchez told a business conference.

“As a consequence, today, I regret to say that a pro-European government like Spain’s would vote no to Brexit unless there are changes.”

According to Article 184 of the draft Brexit deal, “the EU and the United Kingdom shall make every effort, in good faith and with full respect for their respective legal systems, to adopt the measures necessary to negotiate rapidly the agreements governing their future relationship”.

But Spain wants to retain what it sees as its right to negotiate the future on Gibraltar with Britain on a bilateral basis, giving it an effective veto.

Although the legal service of the EU Council has tried to reassure Spain that the text does not preclude this, Madrid is seeking further clarification.

Meanwhile, British companies began triggering contingency plans to keep their businesses operating if Britain leaves the EU without a deal.

With less than five months before Britain exits the EU, May won the backing of many firms on Monday for a draft divorce deal as she pursues a charm offensive to get Britain, deeply divided over Brexit, on board.

The Bank of England also offered its support, saying the draft withdrawal agreement would help to safeguard the economy and announcing it would bring forward to November 28 publication of bank stress tests to give analysis of how to cope with a “no deal” Brexit. –