The draft guidelines, which set out the Council's intention to deal first with issues connected to the U.K.'s divorce before moving onto its future relationship with the European Union, contain a specific clause on Gibraltar.
The leaked negotiation guidelines set out this morning by European Council President Donald Tusk seem to give Spain the power to veto a deal between the United Kingdom and the EU if it is dissatisfied with the future of the British Overseas Territory, to which it has a long-standing territorial claim. There's a rock there you might have heard of.
Spain has long claimed sovereignty over Gibraltar and considers Brexit to be an opportunity to regain more control over the territory.
Picardo expressed outrage at being singled out, describing the guidelines as "a disgraceful attempt by Spain to manipulate the European Council for its own narrow political interests".
Papers setting out the EU's Brexit talks strategy say that the region will only be included in a post-Brexit trade deal if Spain agrees with the terms.
(EurActiv) - Spain is likely to wield a veto over any Brexit deal for Gibraltar after the EU-27 backed Madrid in its draft negotiating guidelines for forthcoming divorce talks between the United Kingdom and the bloc.
Gibraltar isn't happy about that.
"What we are seeing is a clear manifestation of the predictably predatory attitude that we anticipated Spain would seek to abusively impose on its partners", he said in a statement.
Some 96% of Gibraltar's citizens voted to remain in the European Union in last year's referendum.
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The EU fueled that anxiety on Friday when it released a nine-page roadmap for the talks, which included a statement that no future agreement after Brexit between Britain and the bloc would apply to Gibraltar unless both the United Kingdom and Spain agreed.
The official, speaking in Brussels on Friday, said European Union leaders should adopt the final mandate to begin the negotiations shortly after May 22, after Britain formally triggered the process this week. Spain must approve the applicability of a future agreement to territory of Gibraltar.
Speaking to Sky News, the Gibraltarian politician, said: 'Let's be very clear about what Spain is doing here, she is employing her unhealthy obsession with Gibraltar and bringing it to the table of a very complex negotiation already. "Not a bargaining chip".
Labour has placed itself squarely behind British citizens in Gibraltar and demanded that their rights be protected in the forthcoming Brexit negotiations.
"So it's unfortunate that the Prime Minister's letter to Donald Tusk, triggering Article 50, made no mention of Gibraltar - the Government mustn't give the impression that Gibraltar is an afterthought".
"Their language on the border has changed because of the amount of Spanish workers involved and the prestige Spain wants to have in Europe".
Thousands commute between Gibraltar and Spain every day, making open borders a crucial issue of the rock's politics. "It is our obligation to support our overseas territories, and any attempt to brush off the importance of this issue is a dereliction of duty by the Government", Brake said.
The Vice Chair of the All-Party Parliamentary Group for Gibraltar, Andrew Rosindell, told the Telegraph that "An agreement without including Gibraltar means there can be no agreement".