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The latest round of talks in Brussels to resolve Gibraltar’s post-Brexit status ended without a deal.
Gibraltar Chief Minister Fabian Picardo spent six hours meeting with British Foreign Secretary David Cameron, Spanish Foreign Minister Jose Manuel Alvarez and European Commission Executive Vice President Maroš Sefzovic.
In a joint statement, the Quartet said they had made “significant progress” based on their last meeting on April 12.
“Today’s discussions were held in a constructive atmosphere, with important breakthroughs and more consensus achieved,” the statement said.
“All parties are confident that the deal is getting closer and will work closely and quickly on the remaining areas to reach a comprehensive EU-UK agreement.”
Hopes had been high that a deal could be reached before the European Commission went into recess for the upcoming European elections.
There is also an incentive for both sides to reach a deal as tensions mount ahead of this year’s UK general election, which will almost certainly produce a new government.
The proposed agreement would remove the hard border between Spain and Gibraltar to allow for the free movement of goods and people.
The airport issue is believed to have been resolved. nation The passage will reportedly be managed by EU border agency Frontex border staff under the supervision of Spanish security forces.
It was this potential arrangement that prompted the UK Select Committee to warn that “British sovereignty over Gibraltar would be diminished”.
However, the Andalusian government may also create more obstacles for Gibraltar, which has complained about its status as a “tax haven”.
“We cannot allow the creation of a tax haven on Andalusian territory, as this would degrade and paralyze economic activity in a region where 300,000 Andalusian citizens live,” said the head of the military junta, Juanma Moreno.
“Gibraltar’s problem is that it has a special taxation system. This leads to a nine-fold income gap between La Línea and Gibraltar’s neighbours.
“Despite the existence of this system, it is technically impossible for Campo Gibraltar to catch up.
“Campo needs its own special tax status to balance the tax systems between the two jurisdictions.
read more: Spain and UK agree ‘general political line’ on post-Brexit Gibraltar deal
He also called on the Spanish government and the European Union to invest more in Campo Port to enable it to compete with the Port of Gibraltar.
But more ominously, he said the junta had only one fundamental goal: “to restore sovereignty to Gibraltar.”
However, Albarez said in an interview with Spanish media that there were no “insurmountable obstacles” to reaching an agreement.
He added: “We hope to be guaranteed in the implementation of Schengen controls, the customs area and the harmonisation of indirect taxes, but there is still much work to be done.”
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