Brexit deal Gibraltar provisions agreed between Spain and UK

Part of the Brexit deal announced by the British prime minister this morning – which has led to four of her cabinet resigning and plunged the Conservative party into 'chaos', in the words of Labour leader Jeremy Corbyn – involves the result of negotiations with Spain over the Rock, where 96% of the population voted to remain in the European Union.

Employed and self-employed workers living in Spain and travelling to Gibraltar, or living on the Rock and commuting to mainland Spain will be able to continue to do so freely, according to the agreement between Mrs May and Spanish president Pedro Sánchez, and both groups will enjoy the same working rights as they do presently as members of the EU.

Bilateral procedures approved by May and Sánchez stipulate that Spain and the UK will exchange information every quarter about 'concerned citizens', a definition that includes 'cross-border workers in particular', and set up a coordination committee on labour issues.

These guarantees will remain in place during the Brexit transition period, which will run from exit day – March 29, 2019 – to New Year's Eve 2020, provided the remaining EU-27 all agree Theresa May's deal.

The transition period may be extended if requested, but only if every single EU member State agrees to this.

Any final agreement post-transition will need to take into account 'all possible negative socioeconomic effects' both for Gibraltar and for the towns in the border district known as the Campo de Gibraltar in the province of Cádiz – Tarifa, Jimena de la Frontera, Castellar de la Frontera, San Roque, Los Barrios, Algeciras and La Línea de la Concepción.

Gibraltar has repeatedly been at the centre of a tug-of-war between the UK and Spain, although less so with the current socialist government – Gibraltarians want to remain British, and most Spaniards who work there and live north of the border share this view, although elsewhere in Spanish society, claims of its being a 'tax haven' and 'hotbed of money laundering' often fuel a determination that Gibraltar should be handed back to Spain.

To tackle these perceptions, Sánchez and May have contracted to 'seek methods of necessary cooperation' in order to 'achieve total transparency in fiscal matters' which 'respect the financial interests of both parties in line with G20 and OECD standards'.

Also in terms of taxation, Gibraltar will be required to increase duties on alcohol and petrol, and has been 'strongly recommended' to increase the price of cigarettes to discourage smuggling, as well as taking steps to prevent contraband tobacco dealing and fraud.

The proposed deal, agreed by the EU's Brexit negotiator Michel Barnier, has not pleased hard Brexiteers within the Tory party as it involves remaining in the customs union to avoid trade barriers or a hard border between Northern Ireland and the Republic of Ireland.

Citizens' exact rights are not clear, other than that expatriates on both sides of the Channel will be able to stay unhindered and will not need visas, provided they moved to their respective countries before the end of the transition period, and immediate family members will be allowed to join them.

Brits will be able to travel to EU countries for up to 90 days in any six-month period without a visa.

It has not been clarified whether British expats within the EU will be able to spend extended periods in other member States, or whether their rights will be curtailed in any way.

Whilst it appears unlikely they will need work permits, some could face obstacles in countries where the majority of firms want employees with EU passports, or where foreigners are not required to be treated equally to natives unless they are EU citizens.

The matter of healthcare for British pensioners within the EU has not been cleared up, although this is mainly dependent upon bilateral agreements with the countries concerned, so may not change after Brexit.

Even though a majority of Theresa May's cabinet has approved her deal, she has to get it past Parliament before it is set in stone.

For the first time ever since she came into power in the UK, Mrs May mentioned the possibility of remaining in the EU in her speech last night.

She said the only options if her deal was rejected were a hard, no-deal Brexit, or 'no Brexit'.