Gibraltar Becomes Another Big Problem For May besides the Irish Border - FX Leaders News
What will the fate of Gibraltar be?

Gibraltar Becomes Another Big Problem For May besides the Irish Border

Posted Friday, November 23, 2018 by
Skerdian Meta • 1 min read

The Irish border problem still remains unresolved regarding Brexit and a backstop can’t be a permanent solution for Brxiteers. In a year or two the backstop will have to go and a solution has to be found until then.

But another problem has arisen recently. The UK “owns” Gibraltar and although this was an issue since the Brexit vote won, the general consensus was that a solution would have been found for the problem by now. That hasn’t happened since Spain is not happy with what the UK has offered for this issue.

Spain has threatened to veto the agreement if they are not pleased with the outcome on Gibraltar. They cannot veto the withdrawal of the UK since the EU needs only a majority of 20 votes to pass it out of 27 countries. The EU countries seem unanimous at this moment but I think that this might just pass.

But, the problem remains when it comes to the trade deal post-Brexit. The EU needs the votes of all the 27 countries for trade deals, so when time comes Spain might vote it down. Therefore, everything is at risk if no solution is found until Sunday’s EU summit.

The officials are still working on a solution, so perhaps this problem vanishes until then, but for now it is a major problem and not that easy to resolve because it is similar to Northern Ireland, since Gibraltar’s residents are mainly British but the land is off the southern tip of Spain.

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About the author

Skerdian Meta is our Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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