Barnier was in Madrid to brief Spanish Prime Minister Pedro Sanchez and Foreign Minister Josep Borrell on the progress in the Brexit negotiations. A Spanish government source said Barnier would also discuss Gibraltar, a British territory on Spain’s southern coast which will leave the EU along with the UK on March 29 next year.
“We continue working in a spirit of good cooperation,” Barnier told reporters as he left the Foreign Ministry.
Despite Barnier’s upbeat mood, there is, so far, no full exit agreement and some rebels in British Prime Minister Theresa May’s Conservative Party have threatened to vote down a deal if she clinches one with the EU.
Former Spanish foreign minister Alfonso Dastis told Reuters in an interview in April that Spain hoped to reach a bilateral agreement with Britain over Gibraltar before October so as not to hinder any Brexit transition deal.
A major obstacle facing Britain as it negotiates its exit from the EU, including the single market and customs union, is future arrangements for the border between the Irish Republic and Northern Ireland, which is part of the UK.
But Brexit also raises problems for Gibraltar, whose economy relies on workers crossing the border with Spain.
Although Gibraltar is not part of the EU customs union, businesses fear regulation of the border could become more rigid following Britain’s exit from the EU, with detrimental effects for the thriving economy of the tiny territory.
Bilateral talks between London and Madrid regarding Gibraltar have been underway since the beginning of the year, with teams of Spanish and British civil servants meeting in encounters arranged in both countries.
Talks have touched on possible joint use of Gibraltar airport and more comprehensive sharing of fiscal data between Britain and Spain for Gibraltar residents to prevent tax avoidance.
