Spain threatens to oppose deal if ‘veto’ does not apply to trade

SPAIN threatened to withdraw support for the draft Brexit divorce deal yesterday if its Gibraltar “veto” did not apply to a future trade deal between the UK and the EU.

Josep Borrell, Spain’s foreign minister, warned that both sides should prepare for “last-minute surprises” as splits appeared among EU member states yesterday over the in-principle deal agreed with the UK by Michel Barnier, the EU’S chief negotiator.

“We want to make sure the interpretation of this text is clear and shows that what’s being negotiated between the EU and the UK does not apply to Gibraltar,” said Mr Borrell.

“The future negotiations over Gibraltar are separate,” he added. “Until that’s clear in the exit text and the political declaration over the future relationship, we won’t be able to agree to it.” Spain has what has been described as a “veto” over the Brexit Withdrawal Agreement in relation to Gibraltar and has been holding bilateral talks with Britain over the territory.

But the country has grown anxious that it might have no say over an eventual trade agreement also covering Gibraltar. Downing Street yesterday

‘The language of vetoes and exclusions [is] the language of the past. It has no place in the modern Europe of today’

repeated its pledge that it would not leave Gibraltar out of any deal, and seek a deal “that works for the whole UK family”, raising fears that Spain’s veto over the agreements applying to Gibraltar could effectively hold up progress on the entire deal.

Fabian Picardo, Gibraltar’s chief minister, said the Spanish comments were “regrettable”, saying: “The language of vetoes and exclusions should be the language of the past. It has no place in the modern Europe of today at a time when both the UK and Gibraltar are trying to build a new positive future relationship with the EU.”

EU governments also remain divided over what conditions will be imposed on any British requests to extend the transition period, Mr Barnier said yesterday, after a meeting of Europe ministers in Brussels which exposed EU infighting over fishing and Gibraltar.

In a message designed to placate rebellious Brexiteer MPS in London, furious over the deal and plotting to topple Theresa May, he told reporters that the overall Brexit agreement would allow Britain to “take back control”.

He insisted that the EU27 was united over including a mechanism to lengthen the extension period beyond the end of 2020 and said on Sunday it could be stretched to Dec 2022.

Any extension will anger Brexiteers because Britain has promised to implement all new EU laws during transition, with expected payments of around €10billion a year.