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Brexit will bring Gibraltar closer to the EU

Friday, June 18, 2021

Significance

The bilateral deal avoids a hard border by including Gibraltar in the Schengen free travel system. This also obliges Gibraltar to align more closely with EU rules in areas such as finance, labour and the environment.

Impacts

  • The removal of the land border between Spain and Gibraltar could make Spain more exposed to illegal migrants.
  • UK state aid to Gibraltar that is perceived as fueling unfair competition could become an issue of tension between Brussels and London.
  • Amid UK-EU tension, Gibraltar’s e-gaming services (25% of GDP) will look to Asia for future growth opportunities.

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