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Britain and the European Union have formally signed a treaty defining Gibraltar’s post-Brexit status, marking a significant step toward reducing border restrictions and ending years of uncertainty surrounding the British overseas territory. The agreement was signed in Brussels by European Trade Commissioner Maros Sefcovic, UK Minister for Europe Stephen Doughty, Spanish Foreign Minister Jose Manuel Albares Bueno, and Gibraltar Chief Minister Fabian Picardo.

Under the new treaty, Gibraltar residents will be able to cross into Spain using their residence cards without passport stamps, while Spanish citizens can enter Gibraltar using a government-issued identity card. Passengers arriving at Gibraltar Airport will undergo passport checks by both Gibraltar and Spanish border authorities, creating a streamlined system for cross-border travel.

The agreement builds on a deal reached last year and is intended to strengthen cooperation between Britain, Spain, Gibraltar, and the European Union. Gibraltar, a British overseas territory at the southern tip of Spain, has remained a sensitive issue since Brexit. Britain has controlled the territory since the 1713 Treaty of Utrecht, making the new accord an important milestone in managing future border and travel arrangements.

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Gibraltar is set to remove its 118-year-old border controls with Spain from July 15 under a post-Brexit agreement between the United Kingdom and the European Union. The move will allow smoother travel between Gibraltar and Spain, ending decades of routine border checks that often caused long delays for the thousands of cross-border workers who commute every day.

The agreement is expected to boost trade, tourism and employment on both sides of the border. Businesses in Gibraltar anticipate increased visitor numbers, while neighbouring Spanish towns, where many residents depend on jobs and customers from Gibraltar, are expected to benefit from easier movement of people and goods. Gibraltar will also become part of the EU customs union and the Schengen free travel area under the new arrangements.

While the deal is being welcomed as a historic step towards closer cooperation, it also introduces new obligations for Gibraltar. Goods sold in the territory must now comply with EU regulations, and a new transaction tax will gradually replace import duties. Despite concerns about additional paperwork and compliance costs, business leaders say the agreement brings long-awaited certainty after years of Brexit-related uncertainty.

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The UK has agreed to allow Spanish border guards to conduct passport checks on travellers arriving in Gibraltar under a draft post-Brexit treaty with the EU. The 1,000-page agreement will introduce Spanish-run “second line” Schengen checks at Gibraltar’s airport and port, following initial controls by local authorities. The deal aims to secure an open land border with Spain and provide long-term certainty for the territory ahead of stricter EU border rules coming into force in April.

While Gibraltar will not formally join the passport-free Schengen zone, Spanish officials will be empowered to carry out searches, arrests and interviews when justified during border control procedures. Non-EU nationals, including British passport holders, will face biometric checks under the EU’s Entry Exit System. The arrangement is intended to eventually remove the 1.2km fence separating Gibraltar from Spain — a crossing used daily by thousands of workers — and streamline travel while avoiding disruption to the local economy.

The treaty also brings Gibraltar into the EU customs union, aligning import duties with Spain and introducing a phased “transaction tax” on goods sold locally, though its zero-VAT regime will remain. Fabian Picardo welcomed the agreement as providing certainty for businesses, while the UK government described it as part of a new era of cooperation with the European Union. The draft must still be ratified by both the UK and European Parliaments before taking effect.

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At the victory celebrations in Madrid, players from Spain’s men’s Euro 2024 winning team led chants of “Gibraltar is Spanish.” Midfielder Rodri, who also plays for Manchester City, was among those participating. The Gibraltar Football Association formally complained to Uefa, calling the chants “extremely provocative and insulting.”

Gibraltar, a British territory since the 18th century, is located at Spain’s southern tip. Spain has long sought its return.

The chants occurred as tens of thousands of Spanish fans gathered in central Madrid to celebrate the team’s 2-1 victory over England in the final. Fans dressed in Spain’s red and yellow cheered as the players toured the city in an open-top bus. The parade concluded in Cibeles Square, where the European Championship trophy was presented. Rodri, alongside right-winger Lamine Yamal, was seen chanting “Gibraltar is Spanish” on stage, a chant later led by team captain Alvaro Morata.

The Gibraltar FA expressed its concern in a statement, condemning the Spanish team’s actions as having “no place in football.”

Gibraltar, a British Overseas Territory with a population of just over 34,000, was ceded to Britain in 1713 under the Treaty of Utrecht. Despite referendums confirming its people’s preference for British rule, Spain continues to claim the territory. Border policing disagreements have arisen since Gibraltar’s departure from the EU with Brexit.

Gibraltar, a Uefa member since 2013, fielded its own team in Euro 2024, finishing last in Group B with no points and a significant 14-0 loss to France, the former champions’ largest win.

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