Centuries-Old Gibraltar Dispute Threatens Brexit Progress

  • May’s government wants quick transition deal to help business
  • Spain says separate talks on disputed territory needed first
Gibraltar gives the EU leverage, UBS’s John Wraith says.Source: Bloomberg
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A 300-year-old argument between Britain and Spain over a small piece of land is threatening to derail Theresa May’s plans to help businesses navigate Brexit.

U.K. officials fear Spain will threaten to veto a Brexit transition phase if the British prime minister refuses to negotiate a separate deal with the government in Madrid that covers the disputed territory of Gibraltar. While the peninsula has been in British hands since 1713, Spain maintains a claim over the 2.6 square miles (6.7 square kilometers) of land.