UK and EU reach historic deal to open Gibraltar’s borders and join Schengen Area

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Jun 11, 2025
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Britain and the European Union have reached a new agreement on Gibraltar, paving the way for open borders with Spain, the abolition of passport checks with the EU, and Gibraltar’s accession to the EU customs union. Under the deal, Gibraltar will effectively join the Schengen passport-free area for the first time, streamlining crossings for approximately 15,000 daily commuters.

Announcing the agreement in Brussels, EU Trade Commissioner Maroš Šefčovič described it as a “truly historic milestone” that will remove “all physical barriers, checks and controls on people and goods” at the border, while providing legal certainty.

Gibraltar’s government has long advocated for such an arrangement, citing increased difficulties at border crossings since Brexit. Spanish Foreign Minister José Manuel Albares said the deal would lead to the disappearance of “the last wall on continental Europe” and enable the free movement of people.

To protect the Schengen area’s integrity, EU border controls will operate alongside British controls at Gibraltar’s airport, modeled after “juxtaposed controls” at London St Pancras Eurostar station.

Gibraltar has agreed to some concessions, including changes to its low tobacco levies as part of a “tax convergence process.” Albares said this would “ensure everyone is treated fairly.”

The agreement contains a specific clause stating that it does not affect British sovereignty over Gibraltar, a point of sensitivity among some UK Euroskeptics.

Spanish Foreign Minister Albares confirmed that Spanish police, acting as EU agents, will enforce Schengen rules and maintain border integrity, including decisions on entry into Gibraltar.

UK Foreign Secretary David Lammy said the agreement offers “a practical solution after years of uncertainty,” safeguarding Gibraltar’s economy and way of life. Gibraltar’s Chief Minister Fabian Picardo said he was “delighted” with the agreement, emphasizing that it protects British Gibraltarians’ interests and sovereignty.

Both sides will now work to turn the political agreement in principle into a legal text. Šefčovič expressed confidence in the deal’s eventual ratification.

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