The agreement negotiated since 2020 will allow to abolish checks at the Gibraltar-Spanish border which is crossed by thousands of people every day. Though hailed as “historic deal”, the agreement does not mean that disputes relating to the sovereignity of Gibraltar come to an end.
Gibraltar, a tiny yet strategically important UK overseas territory near the southern tip of Iberian Peninsula, will effectively become part of Schengen area. That is the main outcome of the deal signed between the EU and United Kingdom. In practical terms, for some 15,000 people that cross the overland border between Spanish town La Línea and Gibraltar every day life will become a lot easier. That concerns commuters and tourists alike.
Passport checks at the Gibraltar airport will be conducted by Spanish and British officials. Thus, the system will be similar as that currently in place for Eurostar passengers at St Pancras train station in London.

“The agreement reinforces a new chapter in the EU-UK relationship,” said Maroš Šefčovič, EU Commissioner for Trade and Economic Security. All parties have committed to finalize the treaty so that it could come into force as soon as possible.
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Question regarding sovereignity remain
Though Spanish Prime Minister Pedro Sanchez and UK Prime Minister Keir Starmer agreed in telephone call that the agreement “brings significant opportunities to strengthen UK-Spain relations in the future”, it is clear that the Gibraltar issue remains a thorny one.
The United Kingdom has retained sovereignty over Gibraltar since 1713 and especially in the past the tiny territory (about 6 sqkm) was of prime strategic importance. The British rule over Gibraltar, however, is disputed by the government in Madrid which claims the territory should belong to Spain. And this has not changed.
The agreement brings significant opportunities to strengthen UK-Spain relations in the future. – Spanish Prime Minister Pedro Sanchez and UK Prime Minister Keir Starmer in a joint phone call
To exert pressure on the UK, in 1969 Spain completely closed the border with Gibraltar and severed all communication links – situation that lasted until 1982. The population of Gibraltar itsef, however, is very much in favour of keeping British sovereignty. In the last referendum on this issue (2002) almost 99 % of voters rejected a proposal to “share” sovereignty with Spain.