Gibraltar : the victim of the divorce.

96 % of Gibraltarians were against Brexit

Despite its geographical position, Gibraltar is and will remain a territory of Great Britain. But after the recent events, its future is uncertain.

Current situation of Gibraltar

Gave in by Madrid to London in 1713, Gibraltar, with its almost 30 000 inhabitants spread over 7 square kilometers, is a british overseas territory, that is to say that it is controlled by the British governement. It is moreover the only one in Europe. Its streets packed of red phone boxes and fish-and-chips restaurants leave no doubt that Gibraltarians feel british, which I noticed when I went over there. Nevertheless, there is a Spanish presence. Every day, 10 000 Spanish people cross the border to work in Gibraltar, attracted by the economic growth of the peninsula and some Gibraltarians live in the other side of the border too because of the cheaper cost of living.

EU member since 1973, Gibraltar enjoys a special status: it is out of the Customs Union and exempt of the duty to deduct VAT. 90% of its commercial exchanges are made with the UK. Gambling and financial services are the two main economic drivers of the region, both representing 40% of Gibraltar's GDP(1500 millions pounds in 2016). In Gibraltar, the unemployment rate is of 1.1%, in other words, nearly non-existent. Besides, it boasts an economic growth of 10.3%.

Consequences for Gibraltar in the context of Brexit

However, in June 2016, the UK voted to get out of the EU. But 96% of Gibraltarians wanted to stay in the EU. Here is the problem. As a result, Gibraltar will end up excluded of the EU against its will. What are the issues that are making tension running high between Spain and the UK?

-The first issue of the referendum is about sovereignty. Spain offers to UK a shared sovereigny, which would allow Gibraltar access to the European single market. No agreement between the EU and the UK would be applied to Gibraltar if both kingdoms do not agree. Perhaps this is the sign of a coming restoration to Spain?

-Other issue is the border. Brexit could be a threat to the freedom of movements. Indeed, the UK is not part of the Schengen Area. Different problems like the quarrel over maritim boundaries, the existence of a toll at the border or the narcotics control will be discussed.

-Tourism will be affected too. Once Gibraltar out of the EU, controls will be intensified which will bring down the number of tourists.

-What's more, the british enclave depends on Spain for its supplying and Madrid benefits of its economy too. The inhabitants living on either side of the border are worried about Brexit to put and end to the economic influence of the peninsula. Furthermore, Madrid will oppose to Gibraltar's unfair competition after Brexit, in particular regarding investments taxation, which are making the british overseas territory a "tax haven". Acordingly, Spain will refuse an agreement that would not be completely acceptable for them.

-For that matter, the EU is not neutral anymore and will take sides of Spain for the simple reason that this one stays in the EU. But Gibraltar does no want to break its relationships with the EU because of its close economic relationship with Brussel and mainly with Madrid.

The Rock of Gibraltar.

Gibraltar is now a subject of discord between Spain and the UK. This situation remembers the Gibraltarians of the time of Franco when they were the stake of a showdown between both countries. Brexit is not effective yet but it will be someday. But did someone ask the apes-Gibraltar's most famous residents-their opinion?

By Marina Hill.

EPD 12, GRUPO 3.