In June 2025, the political agreement reached between the European Union (EU) and the United Kingdom (UK) can be seen as a multilateral and strategic step that redefines Gibraltar’s position within European integration. This agreement not only includes technical arrangements but also offers a broad framework encompassing complex issues such as regional stability, border management, economic integration, and sovereignty sensitivities. In this regard, the agreement represents a significant turning point in eliminating the uncertainties that arose in the aftermath of Brexit and in rebuilding the dynamics of integration on the European continent on a new level.
Although Gibraltar was ceased to Britain under the Treaty of Utrecht in 1713, it has been kept on the agenda due to Spain’s sovereignty claims based on historical, geographical, and cultural grounds. Thus, Gibraltar has been at the center of geopolitical and diplomatic disputes between the two countries for centuries. Brexit has resulted in Gibraltar’s exclusion from the EU legal framework, giving rise to significant uncertainties regarding border crossings, trade relations, and the free movement of citizens between this territory and Spain, an EU member state. The current political agreement signed in 2025 stands out as the first comprehensive and multidimensional legal framework aimed at addressing these uncertainties.
The removal of physical checkpoints at the land border between Gibraltar and Spain will be made possible through the establishment of digital and human-centered crossing systems compatible with the Schengen regime. In this region, where approximately 15,000 people cross the border daily, the goal is to ensure the free movement of people in a manner that is both secure and efficient. The agreement presents a next-generation border management model based on Schengen rules, including border security, biometric inspection, data sharing, and joint monitoring systems.[1]
Allowing Spanish security officials to conduct passport and identity checks at Gibraltar’s airport and port aims to enhance the effective application of EU security standards. This practice is designed to minimize potential security gaps in air traffic and to optimize passenger flow. The system in question is built on the principles of “dual checks” and “shared responsibility,” similar to the Eurostar model between France and the UK.
The agreement also foresees facilitating the movement of goods between the EU and Gibraltar, harmonizing customs controls, and establishing new monitoring mechanisms particularly for high-risk goods that are prone to smuggling such as tobacco, alcohol, and fuel. In this context, Gibraltar is expected to achieve a de facto integration with the EU Customs Union. Additionally, the development of digital declaration systems in sectors such as e-commerce, logistics, and agricultural trade constitutes part of the agreement’s commercial dimension.
Common legal frameworks will be established between the EU and Gibraltar in various areas, ranging from social security and environmental policies to transportation and the fight against financial crimes. Apart from this, special development funds will be allocated to the Campo de Gibraltar region, located in southern Spain and bordering Gibraltar. Through these funds the social, economic, and infrastructural integration of border regions. Plans also include the establishment of legal education programs, judicial cooperation mechanisms, and shared database systems.
The agreement does not foresee any change in Gibraltar’s current sovereignty status. The United Kingdom retains its sovereignty over Gibraltar and continues to exercise its powers in strategic areas such as foreign policy, defense, and security through London. However, in order to eliminate the political sensitivities surrounding the issue of sovereignty, the establishment of continuous dialogue mechanisms between the parties is also among the indirect factors of the agreement.[2]
With the removal of bureaucratic obstacles at border crossings, an increase in employment and commercial vitality is expected both in Gibraltar and in the southern border towns of Spain. This situation, which is anticipated to yield positive outcomes especially for the service sector, small businesses, and cross-border workers, emerges as a balancing factor against the negative economic effects of Brexit. Furthermore, the agreement could lay the groundwork for the formation of a new micro-economic region in southern Europe.
This agreement is one of the rare models that harmonizes the normative structures of European integration with the sovereignty principles of the United Kingdom. The new diplomatic architecture, built upon the principles of shared authority and mutual recognition, serves as an example for addressing the complex legal gaps that emerged in the post-Brexit period. The applicability of this model to other border regions and areas with disputed status has become a subject of academic discussion.
Although some conservative circles in the United Kingdom view this agreement as a risk to national sovereignty, it has been largely welcomed by Gibraltar’s local administration and its public. High levels of support have been recorded in votes held at the level of regional parliaments. On the other hand, in Spanish public opinion, this development has been presented as a success that enhances Spain’s diplomatic influence. EU institutions also consider the agreement a strategic gain, as it serves as an example of flexible cooperation models developed with actors outside the Union.
The Gibraltar Agreement reached between the EU and the United Kingdom is going down in history as one of the most comprehensive and multilayered bilateral arrangements of the post-Brexit era. The multifaceted cooperation structure established between the parties in legal, economic, and political areas reveals the flexibility capacity of European integration, while also reflecting the United Kingdom’s pragmatic foreign policy approach. With its attempt to strike a delicate balance between sovereignty and cooperation, the agreement has the potential to serve as an applicable model for other disputed regions and border regimes. In this respect, the Gibraltar Agreement is not only a regional compromise but also adds a new chapter to the history of integration on the European continent.
[1] “Gibraltar deberá aplicar un gravamen del 15% a sus productos para acercarse al IVA europeo”, El Pais, https://elpais.com/espana/2025-06-12/gibraltar-debera-aplicar-un-gravamen-del-15-a-sus-productos-para-acercarse-al-iva-europeo.html, (Date Accession:15.06.2025).
[2] “EU, Britain seal post-Brexit deal easing Gibraltar border flow”, Reuters, https://www.reuters.com/world/uk/eu-britain-reach-agreement-gibraltar-status-2025-06-11/, (Date Accession: 15.06.2025).
