The EU will back Spain over its territorial claims to Gibraltar in the next phase of Brexit negotiations by giving Madrid the power to exclude the British overseas territory from any trade deal struck with Brussels.
The Observer has learned that the Spanish government has insisted on reference to the Rock in the EU’s opening negotiating position, which will be published in draft form on Monday.
Boris Johnson will be presented with the choice of reaching agreement with the Spaniards about Gibraltar’s future or exposing its citizens to economic peril by pushing it outside any EU-UK trade deal.
“They have in principle asked that the new relationship not apply to Gibraltar without the explicit consent of Spain, which will only be given if the bilateral talks with Spain and the UK over the rock are resolved,” a senior EU diplomat said.
British sovereignty over Gibraltar was formalised by the treaty of Utrecht in 1713 but Spain has always bristled at the idea of UK ownership.
As an EU member state, the UK had been able to resist Spanish claims over the territory but Madrid will now have the full support of the other 26 countries in the bloc.
A foreign office spokesperson said: “The UK will not exclude Gibraltar from our negotiations in relation to our future relationship with the EU. We will negotiate on behalf of the whole UK family, which includes Gibraltar.”
Negotiations with the EU are expected to start on 3 March.
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