Rumblings on the other ‘Rock’ — Gibraltar

In a tussle that could strike a chord with some Bermudians, the UK government is embroiled in a sovereignty row over its British Overseas Territory, Gibraltar.

The UK is considering legal action against Spain following the implementation of additional border checks there, leading to diplomatic tensions. Thousands cross between Gibraltar and Spain on a daily basis and the UK says the ‘over-zealous’ checks are holding up residents, workers and tourists — and therefore the economy. 

Spain however, argues the checks are needed to combat cigarette smuggling, and that seizures of illegal cigarettes soared by 213 per cent between 2010 and 2012. 

What’s the row about?

The conflict over border crossings is an escalation of tensions between the UK and Spain dating back centuries.

Spain lost Gibraltar to an Anglo-Dutch force in 1704 and it was ceded to the UK in 1713.

However, Spain has always wanted it back. In 1984, Madrid said ‘the Rock’ should revert back to Spanish sovereignty after 50 years of shared control.

In recent years, both countries have argued over fishing rights, with both claiming jurisdiction over local waters.

What’s Gibraltar like and why should I care?

Gibraltar, located at the mouth of the Mediterranean, is a British Overseas Territory (BOT), and so what happens there could signal how the UK deals with other BOTs in the future.

The UK will not want to yield any ground, as by doing so, this could set a precedent.

There are similarities between the two territories:

Both Bermuda and Gibraltar are limestone outcrops and are affectionately named ‘the Rock’.

Bermuda is larger, at 53 square kilometres; The Rock of Gibraltar is six square kilometres, but 430 metres in height. Gibraltar’s population of 30,000 is less than half of Bermuda’s.

Gibraltarians, like Bermudians, are British citizens. In a 2002 referendum, they voted overwhelmingly to remain British, with 99 per cent rejecting a proposal of shared sovereignty with Spain.  

Both BOTs are self-governing but the UK retains control of foreign policy and defence. They have sub-tropical climates and are popular tourist destinations. 

The economies of both hinge on financial services and insurance firms. 

Both were important strategic military bases for Britain and crucial points for the Allied anti-submarine campaigns of the wars of the last century. 

Both BOTs are sometimes accused of being ‘tax havens’. Just as the US accuses Bermuda of being a corporate tax haven, so does Spain with regard to Gibraltar.

Why have old tensions flared up again?

In July, Gibraltar placed concrete blocks in the bay to create an artificial reef to enhance its ‘marine reserve’. It said this was necessary to replenish fishing stocks depleted by Spanish fishermen.

Spain then introduced more thorough border checks, resulting in queues of up to six hours in the summer heat. 

Spanish foreign minister Jose Manuel Garcia-Margallo said Spain was also considering a 50 euro (£43/$70) fee for crossing the border.

How did the Brits respond?

In August, UK prime minister David Cameron told the European Union (EU) Commission Spain’s actions could be “politically motivated”. The UK said it was considering legal action through the EU, but Spain threatened to take the dispute to the United Nations Security Council. 

Spain argues its border is being ‘abused’, for tobacco smuggling (cigarettes are 40 per cent cheaper in Gibraltar), money laundering and Spanish residency tax evasion.

What’s happening now?

A few weeks ago, six EU inspectors were sent to Gibraltar to investigate the border issues. Both sides in the row await their
findings.