Gibraltar sovereignty issue! An explanation of its history and importance
Brexit negotiations between the UK and Europe are in a critical phase, but now the Gibraltar sovereignty issue has flared up again following the Irish border issue.Gibraltar sovereignty issue has flared up again.
When the UK voted to leave and invoked Article 50 of the Lisbon Treaty, the Gibraltar sovereignty issue was the main problem. Other issues, such as the Northern Ireland border, had been hidden behind it.
↓↓↓This is an article from back then↓↓↓
Last week, as Prime Minister May and European Commission President Juncker held talks and the Brexit negotiation seemed to be moving toward an agreement, Spain suddenly opposed it.
At a time when the UK and Europe were on the cusp of agreement... just when an agreement was about to be reached, they raised the Gibraltar sovereignty claim.
What is the Gibraltar problem!?
I have summarized it briefly.
Gibraltar... personally, I think it will be more contentious than the Irish border issue because it directly impacts the economy, military, and profits.
～History of Gibraltar～
・From the 8th century to the 15th century, it was under Islamic rule.
・In 1462 it was ruled by the Kingdom of Castile, a Christian state in the central Iberian Peninsula.
・The Castilian Kingdom later became the Kingdom of Spain (1479–).
・In the 17th century, the Dutch occupied it.
・After the War of the Spanish Succession, the Treaty of Utrecht (1713) established British sovereignty.
・Thereafter Spain repeatedly asserted that it was its own territory, worsening relations with Britain.
・In 1967, a referendum on allegiance showed almost all votes for Britain.
・In 1986, Spain joined the EU and diplomatic relations resumed.
・In 2002, a referendum on joint sovereignty by Britain and Spain showed 99% voting against.
～Geographic and strategic importance of Gibraltar～
Gibraltar’s location is shown in the map below. Owning Gibraltar would grant sovereignty over the Strait and its territorial waters. The Strait of Gibraltar is the gateway to the Mediterranean. If access to the Mediterranean is blocked, it would be a major loss for trade and defense.
European map
Strait of Gibraltar
～Gibraltar’s trade and commercial importance～
Gibraltar is frequently noted for its geography and military significance, but it is also an important tax haven.
Gibraltar’s corporate tax is 10% (EU is 25%), and many companies have a base there. Therefore, besides tourism, there are online gambling, insurance, and financial services sectors, and the economy is strong with an unemployment rate just under 1%.
EU member states require approval from the European Commission for tax policies. In this Brexit negotiation, the UK aimed to turn into an economic “Singapore” in Europe after withdrawal, planning to reduce corporate taxes. However, the EU did not approve, and it was not incorporated into the withdrawal plan, according to information.
Given the above, Gibraltar remains an important hub.
Spain is insisting on joint governance of Gibraltar as a condition of the UK’s Brexit. In the referendum on leaving the EU, most Gibraltar residents voted against leaving.
Naturally, if free movement to and from Spain is restricted, daily life becomes inconvenient. For companies, the future relationship with the EU becomes unclear.
Therefore, it seems more people will support joint governance than in the 2002 referendum.
We will be watching closely the future paths of the UK, Spain, and Gibraltar’s residents.
