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Border moves to help local economy - 27th July 2026

The last border fence in western Europe's been taken down thanks to a new treaty. The fence had divided Gibraltar and Spain since 1908. The new treaty creates a fluid border which will bring economic benefits to the region.

Gibraltar's a port town which measures under 7 square kilometres. It's located close to the entrance of the Mediterranean. This British Overseas Territory has around 40,000 residents. However, its workforce includes 15,000 people who travel into Gibraltar from Spain every day.

Brexit created a hard border between Spain and Gibraltar. Strict border checks led to delays which made employees up to 7 hours late for work. Deliveries were also delayed, which sometimes caused shortages in Gibraltar's shops. Spanish towns lost income as tourists in Gibraltar stopped crossing the border.

Treaty negotiations between the EU, Gibraltar, Spain and the UK lasted four years. The agreement doesn't change Britain's control of Gibraltar, or Spain's claim to the territory.

Instead, Gibraltar and the EU have entered into a customs union. They've relocated EU Schengen border checkpoints to Gibraltar's port and airport. The UK's agreed that Spanish police can operate them.

The deal also agrees a wider coordination of regulations. It provides full employment and pension rights to workers in Gibraltar who are resident in Spain. Spain and Gibraltar will both follow the same environmental rules. Gibraltar's also introduced a sales tax which is similar to Spain's.

Spanish Prime Minister Pedro Sánchez said that the treaty took "courage". He sees "a new era of coexistence and shared prosperity", which is "full of opportunities".