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Bloomberg
A 300-year-old argument between the UK and Spain over a small piece of land is threatening to derail Theresa May’s plans to help businesses navigate Brexit.
UK officials fear Spain will threaten to veto a Brexit transition phase if the British PM 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 6.7 square kilometres of land.
Fears are growing among ministers in London that a new framework for the next phase of Brexit talks, due to be outlined by the EU, might reignite the centuries-old arguments, a UK official said. May faces pressure to quickly strike a deal on transitional terms to assure UK-based businesses that trade rules won’t change suddenly on Brexit day in March 2019. May wants an agreement on the transition phase by March 2018 in order to shift talks on to the long-term future trade.