EU offers Spain veto right over Gibraltar in Brexit talks

The European Union today offered Spain a veto right over the future relationship between Gibraltar and the EU after Britain leaves the bloc, a move that could smooth Brexit talks but also dash Gibraltar's hopes to win a special status.

The future of Gibraltar, a rocky British enclave on Spain's southern tip, is set to be a major point of contention in the exit talks along with issues relating to Britain's access to the EU's single market or future rights of EU citizens in the UK and Britons living in Europe.

Rows between Spain and Britain over Gibraltar have held up entire EU deals in the past – including current legislation governing air travel – and Brussels is keen to avoid a new bilateral dispute getting in the way of an orderly Brexit.

"This seems intended to give Spain something so they don't try to hold the whole withdrawal treaty hostage over it," one senior EU diplomat said in Brussels.

According to the EU's draft joint position on the exit talks, which the remaining members are due to approve on April 29, "after the United Kingdom leaves the Union, no agreement between the EU and the United Kingdom may apply to the territory of Gibraltar without the agreement between...