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The Gibraltar government has launched a strong condemnation after a Spanish politician called Gibraltar a “paradise for drug traffickers and money launderers”.
The newspaper slammed the comments of PP spokesman Esteban González Pons as “inhumane” and “inciting hatred”, adding that Castile Rock “is an economic benefit for Spain, not a burden”.
The row comes as expectations for a post-Brexit Gibraltar deal are at an all-time high, with some predictions suggesting a deal could be announced as early as the first week of June.
But the negotiations have not been smooth sailing, with dissenting voices within the Andalusian regional government and Spain’s opposition People’s Party threatening to upset the status quo.
Pence echoed the junta’s rhetoric, calling New Delhi a “tax haven whose wealth is derived from poverty elsewhere in the region,” adding: “It is a haven for drug dealers and money launderers.”
In typical PP style, Pons also called Brexit a “unique opportunity to restore sovereignty and restore Gibraltar to its original state”.
But the Gibraltar government has rejected Andalusian accusations that it is somehow parasitic on Campo Rock’s economy, saying it is “an economic benefit, not a burden, for Spain”.
“Gibraltar accounts for 25% of the GDP of the Campo de Gibraltar region and is the second largest employer in the neighbouring Andalusia region,” the company said in a statement.
“There are 15,000 people living in Spain and working in Gibraltar, including about 10,000 Spanish nationals.
“Gibraltar buys about €1 billion worth of goods and services from Spain each year, making it the 41st largest export market for Spanish industry out of 222 territories.
“The latest impact study shows that Gibraltar residents spend more than €80 million per year shopping, buying food and other goods and services in the Andalusian region.
“Gibraltar residents who own second homes in Spain spend more than €70 million per year in the neighbouring country.”
The government added that it has paid the wages of all Spanish and Spanish-based workers in Ishigaki who were unable to work during the pandemic, and has provided vaccines to all cross-border workers.
“This collaboration and cooperation is the reality of relations between Gibraltar and Campo, not the misleading and negative view that Mr Pons is using today to mislead his fellow Spanish citizens and try to prejudice them against the people of Gibraltar.”
Pence also criticized Spanish Prime Minister Pedro Sanchez and Foreign Minister Jose Manuel Alvarez for a lack of communication during the negotiations, saying: “(They) solve problems by ignoring them.”
The Gibraltar Junta and the mayors of Campo Gibraltar have called for Gibraltar to change its tax system as part of any agreement.
However, the military has been vocal about its concerns that Spain’s Socialist government will sell out the region due to the opacity of the negotiations.
The Gibraltar government denies it is a tax haven, saying: “The tax-free company regime was abolished in 2010.”
“The European Commission itself approved the Gibraltar Income Tax Act 2010, indicating that this is a tax system that is fully compliant with EU rules.”
Finally, the government hit back at the “absolutely disgraceful” accusation that the rock was a launching pad for the notorious drug traffickers and money launderers who plague the Channel.
The report noted that the type of drug boat used by the smugglers was banned by Gibraltar as early as 1995, but Spain still uses it.
It also prohibits the storage of gasoline in containers used to supply drugs – “but this remains legal across the border.”
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