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Gibraltar (British Overseas Territory)

 Flag of Gibraltar

Last reviewed: 24 February 2009

Country information

Map of Gibraltar

Status: British Overseas Territory
Area: 6.5 sq km
Population: 29,257 (Abstract of Statistics 2007)
Capital city: Gibraltar
Languages: English
Religion(s): Catholicism, Protestantism, Islam, Judaism, Hinduism
Currency: Gibraltar Pound
Political parties represented in Parliament: Gibraltar Social Democrats, Gibraltar Socialist Labour Party and Gibraltar Liberal Party
Governor: Lt Gen Sir Robert Fulton KBE
Chief Minister: Hon Peter Caruana QC

Economy

Basic economic facts

GDP: £599 million (2006)
GDP per capita: £20,831 (2006)
GNP per capita: £19,173 (2006)
Inflation: 2.6 % (2006)
Major industries: Financial Services, Tourism, Shipping/Manufacturing
Major trading partners: International
Exchange rate: Equivalent to sterling

Gibraltar has a thriving, if narrowly-based, economy dominated by three main sectors – financial services, shipping and tourism (including retail for visitors). Since 1978 the economy has undergone major changes – a significant reduction in MOD activities, closure of the Royal Naval Dockyard, re-opening of the border with Spain (which dramatically altered the pattern of tourist/visitor expenditure) and significant growth in the financial sector. Gibraltar has adapted quickly and, according to a recent econometric study, has a resilience hard to equal elsewhere in the world.

The MoD used to employ over 20% of the labour force but now only employs around 8% and contributes about 7% of GDP. Financial Services currently accounts for about 22% of GDP, shipping 20% and retail/tourism 25%. Although figures are not readily available, internet gaming accounts for an increasing percentage of Gibraltar’s GDP. So, although the financial services sector is by no means the major employer, it is the major economic driver. Offshore financial activities, including 8,464 Exempt Companies are also fundamental in generating income and providing new jobs.

Gibraltar's financial sector is regulated by a Financial Services Commission (FSC), made up of UK and Gibraltar senior financial experts. The Commission is headed by a full time Financial Services Commissioner, appointed by the Governor. The UK has secured a generous share of EU Structural Funds for Gibraltar: some 8 million euros over the period 2000-2006. These funds are being used to encourage sustainable economic diversification, particularly in the areas of tourism, financial services, telecommunications, port and light manufacturing activities.

The tourism industry has grown rapidly over the past 15 years and Gibraltar now receives in excess of 8.1 million visitors per annum, who spend over £210 million between them. The majority are cross-border day visitors – 7.48 million in 2006 alone. Numbers for visitors arriving by sea and air are significantly lower - 143,000 visitors arrived by air (many head straight into Spain) and 225,000 by sea (cruise ships are usually in port for less than 12 hours). Overnight visitors represent a small percentage of Gibraltar’s tourism industry, only 59,000 visitors in 2006, staying on average 3.2 days. Hotel occupancy is generally low (47% in 2006 and 56% in 2005).

Gibraltar’s economy is growing at a rate of about 6% per annum, high by European standards. There is, however, the continued uncertainty resulting from the sovereignty dispute with Spain which inhibits the exploitation of full potential and deters some would-be investors, in spite of Gibraltar’s (much improved) reputation as a well-regulated, off-shore financial and business centre.

History

On 4 August 1704 Admiral Sir George Rooke, in command of an Anglo-Dutch fleet landed at Gibraltar, overcame its Spanish garrison and established a British military base. Gibraltar was ceded to Britain in 1713 under the Treaty of Utrecht. A series of further treaties between 1729 and 1763 confirmed this. The Spanish made a number of attempts to recover the Rock by force up until 1783. In 1830 Gibraltar became a Crown Colony and increasingly important to British defence and commercial interests. Due to its strategic position it played an important role during the Second World War (when the civilian population was evacuated), particularly in the Allied landings in North Africa in 1942.

Since 1783 Spain has continued to lay claim to the sovereignty of Gibraltar by non-military means, culminating in the closure of the border in 1969. The border closure was triggered by adoption of the current Gibraltar Constitution and followed a majority vote to remain under British sovereignty in a referendum held in 1967. An Order in Council in 1969 established a Constitution with responsibility for certain matters (termed Defined Domestic Matters) being devolved to an elected Government of Gibraltar while the Governor retained other responsibilities (principally those for external affairs, defence and internal security). The Preamble to the Constitution Order stated that HMG would never allow the people of Gibraltar to pass under the sovereignty of another state against their freely and democratically expressed wishes.

In 1980 full restoration of communications was agreed at a meeting of British and Spanish Foreign Ministers in Lisbon, although the border was not fully reopened until 1985. The 1984 Brussels Communiqué, issued jointly by the UK and Spain, established a process of negotiations known as the 'Brussels Process'. This enabled both sides to discuss a range of Gibraltar-related issues, including sovereignty. At a Brussels Process meeting in December 1997, the then Spanish Foreign Minister, Abel Matutes, proposed temporary joint British and Spanish sovereignty over Gibraltar before sovereignty would revert to Spain. There was considerable public and political opposition to these proposals in Gibraltar. At the next Brussels Process meeting on 26 July 2001, Ministers agreed that the Matutes proposals were not an acceptable basis for discussion and agreed to set them aside and look to the future. Further meetings took place in Barcelona on 20 November 2001 and in London on 4 February 2002.

On 12 July 2002, UK Foreign Secretary Jack Straw reported to Parliament on the progress of the talks. He explained that no final agreement had yet been reached, but that the Government was in broad agreement with Spain on many of the principles that should underpin a lasting settlement. The Foreign Secretary also made clear that the Government would only reach a final agreement it could commend to the people of Gibraltar, that any agreement must be permanent and that existing military arrangements would have to continue. He reiterated that the people of Gibraltar would have the ultimate say in an UK-organised referendum. As a reaction to the 12 July statement, the Government of Gibraltar organised a referendum on the principle of joint sovereignty with Spain. Neither the UK nor Spanish governments took part in the referendum, which took place on 7 November 2002. There was an 88% turnout, with 98.5% voting against any sharing of sovereignty with Spain.

On 27 October 2004, the Ministers for Foreign Affairs of Spain and the United Kingdom, Miguel Angel Moratinos and Jack Straw, met in Madrid. During their meeting they discussed Gibraltar and agreed to consider and consult further on how to establish a new forum for dialogue on Gibraltar, with an open agenda, in which Gibraltar would have its own voice.

On 18 September 2006, the first Trilateral Ministerial meeting was held at the Palacio de Viana in Cordoba. Mr Geoff Hoon, Minister for Europe, represented the UK, while Foreign Minister Moratinos and Chief Minister Peter Caruana represented Spain and Gibraltar respectively. At the meeting, a landmark agreement was reached on a range of issues. These included: telecommunications; the expanded use of Gibraltar Airport; the improvement of pedestrian and traffic flows at the border crossing between Gibraltar and Spain; and a settlement on pensions that would provide a fair deal for those Spanish citizens who lost their livelihoods when the border between Spain and Gibraltar closed in 1969.

A second Trilateral Forum Ministerial Meeting took place at Lancaster House on 2 July 2008. Participants reviewed and welcomed the progress made in the implementation of the Cordoba Statements. The meeting set out six new areas of cooperation on the environment; financial services and taxation; judicial, customs and police cooperation; education; maritime communications and visa-related issues.

International relations

Gibraltar is within the European Community by virtue of Article 299(4) of the Treaty of Rome that established the European Community. However, under the UK's Act of Accession to the EC Gibraltar is excluded from four areas of Community policy: the Community Customs Territory and Common Commercial Policy (and thus Community rules on the free movement of goods, do not apply); the Common Agricultural Policy; the Common Fisheries Policy; and the requirement to levy VAT. Gibraltarians have rights of free movement within the EU. While the UK Government is ultimately responsible under the Treaty for the Implementation of Community Law in Gibraltar, EC measures are usually implemented within the territory by means of local legislation enacted by the Gibraltar legislature.

The Gibraltar electorate voted for the first time in the European Parliament elections in June 2004. 57.54% of Gibraltarians voted. The franchise for European elections was extended to the Gibraltar electorate in order to comply with a ruling by the European Court of Human Rights in February 1999. This objective was achieved by means of the European Parliament Representation Act 2003, which received Royal Assent on 8 May 2003, and accompanying regulations. These provided for the creation of a new electoral region combining Gibraltar with the existing South West England electoral region. The constitutional nature and relationship of the United Kingdom and Gibraltar remained unchanged.

Gibraltar's representation in the UK

The Government of Gibraltar has a London Office at:

150 The Strand
London
WC2R 1JA
Tel: 020 7836 0777
Fax: 020 7240 6612
Email: info@gibraltar.gov.uk

Geography

The peninsula that is Gibraltar is in Europe, bordering the Strait of Gibraltar on the southern coast of Spain. The Strait of Gibraltar links the Mediterranean Sea and the North Atlantic Ocean.

Politics

Constitutional status

Gibraltar has a considerable measure of devolved government. The 1969 Gibraltar Constitution Order formalised the devolution to local Ministers of responsibility for a wide range of 'Defined Domestic Matters'. The Governor, the personal representative of HM The Queen, retained direct responsibility for all matters not specifically allocated to local Ministers.

In 1999, work began to modernise this Constitution. The starting point was the invitation in the 1999 White Paper ("Partnership for Progress and Prosperity: Britain and the Overseas Territories") to OT Governments to submit proposals for constitutional reform. In July 1999, the Gibraltar House of Assembly created a Select Committee to report on constitutional reform. The Committee published its proposals in January 2002 and the British Government formally received them in December 2003. These proposals were subsequently discussed between delegations from the UK and Gibraltar in November/December 2004, September 2005 and 2006.

On 27 March 2006, a joint statement was made by the UK and Gibraltar, announcing the successful conclusion of the Gibraltar Constitutional negotiations. On 2 January 2007, the new Constitution came into force, after it had been approved by over 60% of those who voted in a referendum on 30 November 2006. The Constitution thoroughly modernises the UK-Gibraltar relationship. Key elements include limiting the responsibilities of the Governor to the areas of external affairs, defence, internal security and the public service, thereby reversing the previous practice and giving Gibraltar much greater control over its internal affairs. The House of Assembly is restyled the Gibraltar Parliament, and may determine its own size. New commissions will be created to handle appointments in the Judiciary and Public Affairs, and the creation of a new Police Authority for Gibraltar will give Gibraltar a greater input into policing matters.

The current Governor is Lt General Sir Robert Fulton KBE. He took up his appointment on 27 September 2006. Gibraltar's legislature, the Parliament, consists of a Speaker and 17  members. Elections take place every four years. British Citizens, British Overseas Territories Citizens, British Overseas Citizens and British Subjects who fulfil residence requirements, who are over 18 years of age and who are not subject to any legal incapacity, are entitled to vote. The territory consists of a single constituency. There is a block voting system under which each elector may vote for up to 10 candidates. The last elections were held on 11 October 2007. The current Chief Minister of Gibraltar is Peter Caruana QC. Mr Caruana's party, the Gibraltar Social Democrats (GSD), has an absolute majority (ten seats) in the Parliament. The seven other seats are held by an alliance of the Gibraltar Socialist Labour Party (GSLP), led by Joe Bossano (Chief Minister from 1988 until 1996) and the Gibraltar Liberal Party, led by Joseph Garcia.

Government

Governor's Office

His Excellency The Governor and Commander-in-Chief: Lt Gen Sir Robert Fulton KBE
The Convent
Gibraltar
Tel: (00)(350) 20045440
Fax: (00)(350) 20047823
Email: Enquiry.Gibraltar@fco.gov.uk

Deputy Governor's Office

Deputy Governor: The Hon Lesley Pallett
The Convent
Gibraltar
Tel: (00)(350) 20049473
Fax: (00)(350) 20047823

Chief Minister's Office

Chief Minister: The Hon Peter Caruana QC
No 6 Convent Place
Gibraltar
Tel: (00)(350) 20070071
Fax: (00)(350) 20076396

Other government departments

Ministry for Trade, Industry and Communications
Ministry for Education, Employment and Training
Ministry for Heritage, Culture, Youth and Sport
Ministry for Environment, Roads and Utilities
Ministry for Housing
Ministry for Social and Civic Affairs
Ministry for Health
Treasury

Elections

The next elections are due to be called before the end of October 2011.

Human rights

Overseas Territories are expected to comply with their obligations under the international human rights instruments that have been extended to them. The following major Conventions apply in Gibraltar:

  • European Convention on Human Rights (ECHR)
  • International Covenant on Economic and Social and Cultural Rights (ICESCR)
  • International Covenant on Civil and Political Rights (ICCPR)
  • UN Convention Against Torture (UNCAT)
  • UN Convention on the Elimination of All Forms of Racial Discrimination (CERD)

The UK is encouraging Gibraltar to accept the extension of the Convention on the Rights of the Child (CRC) and the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) at the earliest opportunity. The Government of Gibraltar has already expressed its willingness to extend the latter, as well as its Optional Protocol, subject to the necessary legislation being passed.

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Contacts

Gibraltar, Office of the Governor

Address:

Office of the Governor
The Convent
Main Street
Gibraltar

Telephone:

(350) 200 45440

Fax:

(350) 200 47823

Email: enquiry.gibraltar@fco.gov.uk

Email: csro@gibtelcom.net

Office hours:

GMT:
Mon-Fri: 0800-1625
(July-August): Mon-Fri: 0730-1330
Local Time:
Mon-Fri: 0900-1725
(July-August): Mon-Fri: 0830-1430