Government preservation of self-interests puts Gibraltar businesses at risk   

By Craig Sacarello 

 The Opposition has been clear and consistent: we want a safe and beneficial Treaty to succeed, business wants it to succeed and the people of Gibraltar want it to succeed.  

But while Government has been consumed by defending itself and preserving its own political position, it has failed in its duty to prepare and protect the business community.  

A Treaty of this scale demands leadership, transparency and serious planning and yet businesses have been left in the dark, paying the price for a Government distracted by self-interest rather than focused on delivery.  

Businesses, in particular retailers, wholesalers and hauliers, are now facing what many describe as an existential threat and immediate practical difficulties as a direct result of Government’s actions.  

These sectors are being asked to absorb the most profound operational changes our economy has faced in decades without any clarity on customs procedures, tariffs, documentation or timelines.  

Uncertainty on this scale is not an inconvenience; it is a threat to jobs, livelihoods and investment.  

These businesses are not just shopfronts, they are a part of who we are, our British Gibraltarian identity.  

They are also significant contributors to the public purse which pays for our GHA, Education and Care services.  

This situation did not arise overnight and is of the Government’s own making; Government is not the victim here.  

The political agreement on the Gibraltar/UK-EU Treaty was reached on 11th June 2025 and serious planning should have, at the very latest, commenced back then.  

Since the summer, however, Government has been entirely distracted in conducting an exercise in political self-preservation.  

Parliament’s time between September and December 2025 was almost entirely taken by Government’s efforts to discredit the findings of the Principal Auditor and his office.  

That was swiftly followed by the publication of Sir Peter Openshaw’s McGrail Inquiry report, at which point Government pivoted to defending the Chief Minister against indefensible findings of “grossly improper conduct” and “impropriety”.  

This indulgent, self-serving, damage-limitation exercise has come at a cost.  

While Government sought to twist the findings of two serious reports into a narrative of its own making, it neglected its core duty: serving and protecting the public interest.  

Business has paid the price for that neglect.  

It is disingenuous of the Government to portray the rushed implementation as something suddenly imposed by the European Union without notice through the Entry/Exit System timetable.  

The potential for EES to compress Treaty timelines was always on the cards.  

Good governance requires planning for foreseeable risks.  

The last-minute scramble we now see is not the result of surprise, but of insufficient foresight and preparation.  

That planning should have included sustained engagement with business, the early deployment of customs experts, change-management specialists, IT and systems professionals and advisers well versed in the recommendation of Government support mechanisms that avoid State Aid.  

Instead, we are now witnessing an 11th-hour plea to business to help identify remedial solutions, solutions that should have been developed collaboratively long before now.   

What is particularly troubling is that the Government’s leadership has, for years, publicly insisted, whether through ignorance or self-interest, that no businesses would be harmed by the Treaty outcome.  

In response to one of my questions in Parliament on Thursday 15th January 2026 (Q.946: When will the Government provide the business community with a detailed plan of action to support ailing businesses that may be directly affected by the transaction tax?) the Chief Minister’s response was, “for the millionth time we do not think there will be ailing businesses”.  

That assertion is now demonstrably false.  

Businesses already facing extremely serious challenges on the back of significant cost-increases in tax and tariffs are now also having to grapple with the unwanted and unnecessary uncertainty of an unplanned transition, with a mere two months (42 working days) notice.  

The Opposition remains constructive and forward-looking.  

We believe a safe and beneficial Treaty can still represent an opportunity for success.  

But optimism alone will not keep shopfronts open, trucks moving or supply chains functioning.  

Government must urgently change course and publish the detail, provide clear guidance, invest properly in implementation support and resources while engaging meaningfully with the sectors that keep our economy alive.  

They have a duty to provide nothing less.  

Clarity is not a luxury, it is essential infrastructure for business, and it is long overdue. 

Craig Sacarello is a GSD Member of Parliament.