Gibraltar’s Watershed Moment: Historic EU Agreement Reshapes Territory’s Future While Maintaining British Identity

A Historic Agreement for Gibraltar’s Future

The United Kingdom, alongside the Government of Gibraltar, has reached a groundbreaking political agreement with the European Union that will protect British sovereignty, ensure UK military autonomy, and secure Gibraltar’s economic future. This historic deal, announced on June 11, 2025, resolves the last major unresolved issue from Brexit.

Key Changes and Implications

Under the new agreement, all checks and controls on people and goods circulating between Spain and Gibraltar will be removed, establishing a customs union between Gibraltar and the EU. For those arriving at Gibraltar’s airport and port, there will be two sets of checks: Gibraltar authorities will continue their own checks while Spanish authorities will conduct Schengen area checks on behalf of the EU.

This development is particularly crucial for the approximately 15,000 people – over half of Gibraltar’s workforce – who cross the land border between Spain and Gibraltar daily. Without this new agreement, the EU’s incoming system of entry and exit controls would have introduced a ‘hard border’ requiring individual passport checks, potentially causing significant economic damage to Gibraltar – potentially costing hundreds of millions annually.

Sovereignty and Military Presence

The Foreign Secretary has confirmed that the military base will “continue to operate as it does today,” with the UK and EU agreeing to a clause “explicitly protecting” UK sovereignty over Gibraltar. The agreement makes clear that UK sovereignty over Gibraltar remains unchanged, and the UK government has emphasized that Spain will have no jurisdiction over Gibraltar’s internal governance, immigration enforcement, law enforcement, judicial system, or taxation.

Looking Ahead

The main objective of the agreement is to secure the future prosperity of the whole region. This will be achieved by removing all physical barriers, checks and controls on persons and goods circulating between Spain and Gibraltar, while preserving the Schengen area, the EU Single Market and Customs Union. This arrangement aims to bring confidence and legal certainty to the lives and well-being of people in the whole region.

The solution, backed by Gibraltar’s Chief Minister and the UK government, guarantees Gibraltar’s sovereignty, economy, and way of life, demonstrating competent governance that fixes problems rather than creating them, while protecting Britain’s interests abroad to ensure security and growth at home.