Gibraltar punches a rock over Brexit deal

Spain and Gibraltar want to reach a side deal with Britain to avoid having a hard EU border in southern Spain after Brexit, but have stumbled on “a lack of political will” in London, a Spanish diplomatic source said.

The source said any deal aimed at creating a “shared prosperity zone” in Gibraltar, a British territory over which Spain claims sovereignty, was unlikely to be reached before a full Brexit agreement.

That broader deal remains uncertain just two months before Britain’s post-Brexit transition period ends.

“We’ve made our suggestions, explored technical solutions on how to get there. What is lacking is the political will to close the deal.

The ball is in the United Kingdom’s court,” the source said on Wednesday.

Failure to reach a side deal on Gibraltar would carry a heavy social, economic and political cost, the source said.

Britain’s foreign office said it was committed to finding a solution to support Gibraltar.

“The UK and government of Gibraltar have held a number of constructive discussions with Spain on this issue,” a spokeswoman said.

“It is clearly in all parties’ interests to find a solution.”