The United Kingdom and Spain have agreed a deal that will give Gibraltar access to the European Union after more than three years of negotiations.

The conclusive political agreement on the core aspects of the future Agreement was announced late Wednesday by European Commissioner Maroš Šefčovič, Spanish Minister for Foreign Affairs José Manuel Albares and UK Foreign Secretary David Lammy, together with the Chief Minister of Gibraltar Fabian Picardo

The future Agreement will lead to the removal of all physical barriers, checks and controls on the border between Gibraltar and Spain while preserving the Schengen area, the EU Single Market and Customs Union.

Entry into the area via Gibraltar’s port and airport will be subject to dual Gibraltar and Schengen border checks, with the Schengen checks to be carried out by Spain.

In a joint statement, the parties said that the future EU-UK Agreement will also include level playing field commitments on state aid, taxation, labour, environment, trade and sustainable development, anti-money laundering, and transport, as well as the rights of frontier workers and social security coordination.

“The way is now clear for negotiating teams swiftly to finalise the full legal text and proceed with the respective internal procedures leading to the signature and ratification of the future Agreement,” they said.

“The Parties are confident that this Agreement will support prosperity and bring confidence, legal certainty, and stability to the lives and well-being of the people of the whole region.”

Following the announcement, UK Prime Minister Keir Starmer spoke with Spanish Prime Minister Perdro Sanchez and Gibraltar First Minister Fabian Picardo to congratulate them on the historic agreement to secure the future of Gibraltar.

Gibraltar is home to numerous online gaming companies but has seen a significant reduction in the number of people employed in the industry since Brexit, mostly due to issues at the border.

An estimated 15,000 people cross the border each day, representing 50 per cent of Gibraltar’s workforce.

“This government inherited a situation from the last government which put Gibraltar’s economy and way of life under threat. Today’s breakthrough delivers a practical solution after years of uncertainty,” said UK Foreign Secretary David Lammy.

“Alongside the Government of Gibraltar, we have a reached an agreement which protects British sovereignty, supports Gibraltar’s economy and allows businesses to plan for the long-term once again.”

Gibraltar Chief Minister Fabian Picardo added: “I’m delighted we have finalised a conclusive political agreement which will bring legal certainty to the people of Gibraltar, its businesses and to those across the region who rely on stability at the frontier. 

“I have worked hand in glove with the UK government throughout this negotiation to deliver the deal Gibraltar wants and needs – one that will protect future generations of British Gibraltarians and does not in any way affect our British sovereignty. 

“Now is the time to look beyond the arguments of the past and towards a time of renewed cooperation and understanding,” Picardo concluded. “Now the deal is done, it’s time to finalise the Treaty.”

Negotiations for a UK-EU Treaty on Gibraltar began in October 2021.