Gibraltar’s Transformation: Historic EU Agreement and Tech Investment Herald New Era

Historic EU Agreement Marks New Chapter

On June 11, 2025, Gibraltar reached a groundbreaking political agreement with the EU and UK, which will remove the need for border checks between Spain and Gibraltar while enabling EU/Spanish checks at other entry points into Gibraltar.

The agreement establishes a customs union between Gibraltar and the EU, eliminating all checks on people and goods between Spain and Gibraltar. Under the new system, Gibraltar authorities will maintain their checks at airports and ports, while Spanish authorities will conduct Schengen area checks on behalf of the EU, requiring close cooperation between all border, law enforcement and customs authorities.

Economic Growth and Investment

In a major development for Gibraltar’s economic future, plans have been announced for a £1.8 billion data centre, set to become one of Europe’s largest facilities by 2033. The project, described by Economic Development Minister Sir Joe Bossano as the most significant infrastructure investment since the 1990s, will be built to Tier III standards and serve both public and private sector clients across Europe.

The facility is expected to create 500 jobs during construction and 100 permanent positions once operational. The first phase is scheduled to be operational by late 2027, with subsequent sections completed at 18-month intervals. This investment comes at a crucial time as demand for data centre capacity across Europe increases due to growing artificial intelligence adoption across industries.

Financial Performance and Future Outlook

Gibraltar’s economy shows strong performance in 2025/26, with forecasts indicating a £5.3m surplus. The territory demonstrated impressive results in 2024/2025, achieving a surplus of £9.782m – triple the forecast amount. Current cash reserves stand at £268m.

The government acknowledges past challenges but emphasizes that the new agreements and investments protect British sovereignty while supporting Gibraltar’s economy and allowing businesses to plan for the long-term.