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Border moves to help local economy - 27th July 2026

Western Europe's last border fence has been removed, following four years of treaty negotiations. The fence, separating Spain and Gibraltar, had been erected in 1908. It's replaced by a fluid border between the EU's Schengen area and the tiny peninsula, which is a British Overseas Territory.

Covering just under 7 square kilometres, Gibraltar's a strategic port at the entrance to the Mediterranean. After the UK's exit from the EU, stricter controls came into force at the border. This presented daily challenges for the 15,000 frontier workers who commute into Gibraltar, its 40,000 residents, and the 12 million tourists who visit every year.

Spanish police would tighten border controls further in response to diplomatic tensions, causing waits between one and seven hours. Employees arrived late for work, and delayed deliveries left shops with empty shelves. Tourists chose to avoid crossing into Spain, damaging the region's economy.

The fluid border's the result of negotiations between the EU, Gibraltar, Spain and the UK. Gibraltar's port and airport now host EU Schengen border and customs checkpoints, staffed by Spanish border guards. A customs union between the EU and Gibraltar facilitates this without affecting Gibraltar's British sovereignty.

The prime minister of Spain, Pedro Sánchez, welcomed "a new era of coexistence and shared prosperity". He promised a future "full of opportunities for the 300,000 Andalusians living in the Campo de Gibraltar."

The far-reaching agreement provides frontier workers with equal employment rights. It also aligns pension entitlements, sales taxes and environmental regulations. A social fund financed by the EU and the UK will reduce inequalities across the region.

Gibraltar has been British territory since the Treaty of Utrecht in 1713. Today's treaty hasn't altered Spain's longstanding territorial claim to the peninsula. Nevertheless, Sánchez praised it as an example of politics finding "the courage to resolve" inherited problems.