Border fluidity ‘the lifeblood’ of Gib economy, Feetham says 

Gibraltar’s current economic model is built on “the reality of an open frontier” and “will not survive a hard border”, Nigel Feetham, the Minister for Justice, Trade and Industry, told Parliament. 

Speaking on the treaty motion, Mr Feetham stressed that the economy as structured could not function if cross-border movement became severely restricted.  

He described border fluidity as “the lifeblood” of Gibraltar’s economy, noting that around 15,000 workers crossed daily between Gibraltar and Spain and that this mobility sustained families on both sides.  

A fluid frontier was not an abstract political objective but the enabling condition for investor confidence, operational continuity and the tax revenues that fund public services, he said. 

“Border fluidity matters, because the economy matters,” he said.  

“Our tax revenues matter. Our economic stability matters.” 

“Our ability to fund our public sector, education, public pensions and our health services matter.” 

“For a country of our size, that is not theoretical. It is a live issue, even an existential issue.” 

“The stakes are huge.” 

Mr Feetham contrasted this with the consequences of a no-treaty scenario, warning that the EU’s Entry/Exit System would apply in full at the land border, including biometric checks for non-EU nationals, which he said would cause serious disruption to daily life and the economy.  

The treaty, he argued, was “pragmatic, forward-looking and rooted in cooperation”, and would avoid this outcome for Gibraltar residents and provide legal certainty around border arrangements.  

In outlining sectoral impacts, Mr Feetham highlighted gaming and financial services as key pillars, saying these industries accounted for over half of Gibraltar’s economy and depended on cross-border workers and the ability of senior executives to live and operate from Gibraltar.  

He said the gaming sector, employing about 3,400 people with roughly two-thirds cross-border, stood to be a principal beneficiary of the treaty because operational needs required frictionless movement.  

He acknowledged the treaty would not restore the right to provide gambling services directly into the EU, but said it protected key negotiating red lines, including the VAT position for gambling support services, while cushioning what would otherwise be a sharper shock from a hard border at a time of UK gambling tax increases.  

Mr Feetham also used fiscal performance to underline how border fluidity supported the economy.  

He reported corporate tax receipts had already exceeded the previous year’s record, with over £245 million collected and a month still to go, and argued that this success was built, “among other things,” on an open frontier.  

He said corporate tax was a “lifeline” underpinning economic and social stability and insisted the treaty was about protecting jobs, revenue and opportunity.  

Mr Feetham also criticised the GSD’s positioning, describing Opposition speeches as confusing and contradictory.  

He said Opposition MPs appeared to be “sitting on the fence”, suggesting they wanted to claim credit if the treaty succeeded while distancing themselves if difficulties emerged.