Gibraltar derives from
Gibel Tariq – Tariq’s Mountain – which is named after Tariq Ibn Zeyad who led the eighth-century conquest of Spain by a combined force of Arabs and Berbers crossing from Africa. Gibraltar’s unusual status was not acquired until almost 1000 years later, long after the Islamic invaders had been driven out by the Spanish, as a consequence of the 1713 Treaty of Utrecht which brought to an end the War of the Spanish Succession and gave the territory to Britain. The British interpretation of the treaty moreover, holds that the territory was ceded
to them indefinitely. The presence of a foreign-owned mini-state on the Spanish mainland has been an irritant to Anglo-Spanish relations ever since (though the UK points to the Spanish-controlled enclaves of Ceuta and Mellila on the Moroccan coast). The Spanish dictator, General Franco, launched a campaign in 1963 through the United Nations to reclaim Gibraltar, adding to the pressure by closing the border and severing telephone links.
Since the death of Franco in 1975 and the return of democracy to Spain, relations between London and Madrid have improved immensely in every area – except Gibraltar. The current Spanish position was first outlined by Felipe González, Spain’s Socialist premier during the 1980s, when he suggested joint Anglo-Spanish sovereignty. Successive Spanish governments, including the present Zapatero administration, have since refined the proposals, allowing for possible EU or NATO involvement. The British have no major objection, in principle, to the Spanish recovering full sovereignty over the territory – provided they are guaranteed continued access to its military base facilities. The problem is that the Gibraltarians are having none of it: no handover; no joint sovereignty; no Spanish involvement whatsoever. In response to the latest round of talks between London and Madrid which began in 2001 and explored in detail possible joint sovereignty models, the Gibraltar government led by Peter Caruana organized a referendum in November 2002 to assess the popular mood. As expected, it returned a huge majority in favor of the status quo. Whatever its preferred option, it is politically impossible for any British government to cede the territory to Spain against the clear wishes of the inhabitants.
Domestic politics in Gibraltar are dominated by two main blocs, the ruling center-right Social Democrats and the opposition alliance of the Socialist Labor Party and the Liberal Party. The Social Democrats formed the present government after their victory under the leadership of Peter Caruana, who was re-elected as Prime Minister for a third term at the most recent poll in 2003. On the issue of sovereignty, there are some differences in emphasis, but no essential difference between the basic positions of any of the three parties.
Following the 2002 referendum, whose legitimacy was rejected by both the British and Spanish governments, talks between the two staggered on for another six months. Finally, in June 2003, the British put the process on ice, telling the Spanish that without a fundamental change in the attitude of the Gibraltarians, the status quo would remain. It is difficult to see any prospect of change in the near future: should it come to pass, a major change in economic conditions (see
Economy) is the most likely source.
Talks have taken place in 2005 between the UK and Gibraltar government to discuss revisions to the consitution. The substance of these talks will remain confidential however until discussions are complete.
GovernmentGibraltar is a British Crown Colony, where the British monarch is represented by a Governor, currently David Durie who assumed the post in 2000. The Chief Minister presides over the Council of Ministers which administers domestic affairs. The 17-member House of Assembly, which represents the population’s local interests, comprises 15 elected members. The ex-officio members are the Attorney General and the Financial and Development Secretary. Britain is responsible for defense and foreign affairs.
EconomyThe main sources of income are tourism and offshore financial services, principally banking, insurance and shipping-related services. The industrial economy is based on ship repair, construction and small-scale manufacturing.
The British armed forces (historically the main source of revenue through their base facilities on the Rock) sharply reduced their presence from 1994 onwards and now provide less than 10% of GDP. Since then, concessionary tax and corporate facilities for foreign companies have boosted the financial services sector.
Since 1998, a substantial gambling industry has developed, servicing punters from throughout Europe (again the consequence of a favorable tax regime) and it now makes a significant contribution to employment and government revenue.
The economy as a whole is sensitive to the state of relations with Spain and, in particular, restrictions on border crossings since a significant number of Spaniards have jobs on the Rock.
Next Page »
