GIBRALTAR is moving towards an exit from the single market missing out on benefits from a transition deal, according to Spanish government sources.
Spain was effectively backed by the EU in April in regard to their longstanding territorial dispute and in Brexit negotiation outlines, the 27 member states noted that unless the UK reached an agreement with Madrid regarding Gibraltar’s future status, it would be outside any future trade deal.
According to reports, a Spanish government source has now said that any deal on a transition period in order to soften the blow for the UK leaving the single market was included in this stipulation.
Spain now reportedly believes that Gibraltar will fall out of the single market on March 29, 2019.
The government source told English media: “I think the situation with Gibraltar is crystal clear.”
“Gibraltar became associated with the EU project because of their dependence in the UK. This is going to stay until March 2019. In 2019 when the UK leaves the EU, Gibraltar will leave with the UK.”
“This is what we are telling the Gibraltarians.
“If you want to have your existing status, you will have to talk with us. And I cannot understand why Picardo has refused to do so. I think in the past he has played very hard on the other side. But reality arrives.”
Only four per cent of the Gibraltarian population voted to leave in the UK’s 2016 referendum.