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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.
Keywords:
Spain,
EU,
Gibraltar,
EUR,
EU/UK/SPAIN,
economy,
industry,
international relations,
politics,
social,
foreign policy,
foreign trade,
government,
population,
transport,
border conflict,
employment,
immigration,
services,
tourism
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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