Gibraltar can veto parts of Brexit deal it doesn't like, chief minister says

Exclusive: Fabian Picardo tells The Independent a clause in Gibraltar's constitution gives it the right to choose its own terms for matters such as trade tariffs and regulations, whatever Ms May agrees with Brussels, in a move that could embolden other regions calling for bespoke deals

Mr Picardo presides over a region that delivered the highest ‘Remain’ vote – 96 per cent – of anywhere in the EU referendum

The chief minister of Gibraltar has said he is ready to veto parts of the Brexit deal agreed by Theresa May if it does not work in the territory’s favour.

Speaking exclusively to The Independent, Fabian Picardo said he would not accept anything in the deal that was detrimental to Gibraltar’s business or social care systems.

While the chief minister said he hoped a good deal would be done with the EU, his intervention points to a nervousness in different parts of the UK over whether Ms May’s deal can deliver the economic benefits currently enjoyed by Britain’s membership of the bloc.

Mr Picardo, who presides over a region that delivered the highest Remain vote – 96 per cent – of anywhere in the EU referendum, also called for a second vote on the final terms of any Brexit agreement

In his interview, he set out how he would be prepared to invoke the territory’s constitution to veto conditions of any future agreement if they negatively impact Gibraltar.

Section 47(3) of the constitution gives its leadership autonomy in a range of policy areas, including those relating to business and social care, which could see it set different tariffs and regulations for its important financial services sector, for example.

He said: “It is clear that we do have a Brexit veto for Gibraltar, in Gibraltar.

“We will be able to determine whether aspects of what is agreed will be implemented in Gibraltar or not.

“The application to Gibraltar will be determined by the Gibraltarian cabinet and parliament.”

There is also a push from devolved nations to prevent any Brexit deal signed by Ms May from having a negative outside of England, with Mr Picardo’s position likely to further embolden politicians in Cardiff and Edinburgh.

Confirming his position, a government spokesperson said: “The 2006 Gibraltar Constitution – which was endorsed via a referendum by the people of Gibraltar – provides for a modern and mature relationship between the UK and Gibraltar.

“Gibraltar has a vigorous parliamentary democracy of its own, and is responsible for everything apart from foreign affairs, defence, internal security and some public appointments.”

The chief minister added that it is “absolutely right, proper and fair” that British citizens should get a second referendum on Brexit once the final terms of any deal are agreed with Brussels.

He said: “It’s complex but I think there is democratic legitimacy for a second referendum as new arrangements will have been agreed.”

His call for a further referendum comes after former leader of Ukip Nigel Farage also backed a second vote, to stop “whining and moaning” over Brexit.

Senior politicians from both the Labour and Conservative parties have also thrown their weight behind the idea of the British people having a say of some sort, either through a second referendum or election.

Fabian Picardo with his wife Justine Olivero and their son Sebastian

Coming from humble beginnings on one of Gibraltar’s most deprived estates in Upper Town and ending up at Oriel College at Oxford University, Mr Picardo is determined Brexit will not restrict the sorts of opportunities he had as a young Gibraltarian.

“I was afforded every opportunity by the [Gibraltar Socialist Labour Party] government here growing up,” he says.

“I wanted to enter politics to ensure that remained the case and Gibraltar continued to flourish.”

“It’s about setting Gibraltar up for the next 50 years of Gibraltarian success and prosperity – giving our children the benefits and tools we had.”

Inspired by the chances afforded him by the GSLP, Mr Picardo joined the same movement as an adult.

His passion for the Gibraltarian people and charismatic personality soon saw him rise through the ranks to become its leader.

The politician is, however, now increasingly optimistic that Brexit will provide new markets for Gibraltar’s financial services, online gaming and insurance industries.

He said: “I see it as an opportunity to build bridges with other countries outside of the EU.

“Just look at the countries the UK is looking to do business with – China, New Zealand, Australia, India, the US and Canada.

“Those countries alone represent 2 billion people and the others in Europe have not really been our customers so far.

“I sincerely back Liam Fox’s initiatives in kicking down the doors of international trade barriers and establishing new trade relationships for the UK because we will always be part of those new trade arrangements.”

During Mr Picardo’s tenure as chief minister, Gibraltar’s GDP per capita has risen sharply to £56,612, according to its official budget in 2017 – ranking it as the fourth wealthiest territory on the globe.

It has allowed the rock’s government to continue to invest in its health and education systems to a degree envied by many politicians in the UK.

The Gibraltar Healthcare Authority announced that it has not had to cancel an operation since February 2017 due to bed shortages. Contrast this with the current NHS, where 50,000 non-essential operations were cancelled in January alone.

Education also is entirely subsidised, with many young Gibraltarians studying in the UK free of charge.

“We will never fall into the New Labour trap because we have socialist in our name,” Mr Picardo said.

“If you look at where we are investing and where the debate is in Gibraltar, it is literally as if you had the political debate in the United Kingdom and turned it on its head.”

He added: “You ask the people in the ambulances sitting outside hospitals for four or five hours, or in the corridors of A&E departments whether they think the United Kingdom Government should invest more in healthcare.”