Spain looks at Gibraltar before the Brexit summit

BRUSSELS / HAVANA (Reuters) – Spanish reserves on Friday prevent the EU from crossing the final hurdle before the bloc signs its Brexit deal with Britain, Prime Minister Pedro Sanchez declares that a summit could be canceled Sunday.

There are only four months left before Britain leaves the European Union. The divorce treaty and the accompanying political declaration must be approved in Brussels by British Prime Minister Theresa May and the 27 other European leaders.

But Sanchez said Friday evening that he has not yet received assurances that any future decision on Gibraltar, a British territory off the coast of Spain that Spain would claim, would be taken in direct negotiations with Madrid.

"The guarantees are still not sufficient and Spain maintains its right of veto on Brexit. If there is an agreement, it will be lifted, "he said during a trip to Cuba. "If there is no agreement … the European Council will probably not take place."

Spanish, British and Commission negotiators were still looking for an agreement Friday night.

May will take over Saturday evening when she will meet in Brussels Jean-Claude Juncker, chairman of the EU executive board, and the president of the European Council, Donald Tusk, who will chair the summit.

Spain has requested changes to both the draft treaty of withdrawal and the statement on future links that accompanies it.

At Sunday's summit, EU leaders are waiting to approve the treaty and approve the statement by consensus, which means that Spain actually has the power to slow down the process.

May's spokeswoman said London would work with the Spanish government on Gibraltar.

PRESSURE

In Germany, a government spokesman said he was confident that a solution would be found in time for Sunday's summit.

Berlin had previously stated that there could be no more technical negotiations at the summit and that Chancellor Angela Merkel might ignore them if not all the texts were ready in advance.

If everything goes as planned and if the Brexit package is approved on Sunday, the EU will also promise to try to get a speedy ratification by the European Parliament "in order to allow an orderly withdrawal", according to a draft statement seen by Reuters.

However, the biggest obstacle to the agreement on Brexit is the vehement opposition to the British parliament. Without its approval, Britain could leave the bloc on March 29 without an agreement to mitigate the economic and legal turmoil.

Former Brexit Minister Dominic Raab said Friday that he was expecting the House of Commons to endorse the deal.

Arlene Foster, head of the small Northern Ireland DUP, who supports May's minority government, said she would not support the deal as it stands.

May said that Britain would not get a better deal with the EU if it did not take this one.

ROCK AND FISHING

Determined not to let a new draft risk jeopardizing the fragile process, EU states want to address Spain's concerns in a separate statement made Sunday by the 27 leaders, which would not be part of negotiations with Great Britain.

It could refer to the EU's mandate for the Brexit 2017, which stipulated that after Brexit, "no agreement between the EU and the UK can apply to the territory of the EU. Gibraltar without the agreement concluded between Spain and the United Kingdom ".

This would make it clear that the EU reading of the corresponding paragraphs of the Divorce Treaty and the Declaration on Future Links is exactly that.

According to a draft reviewed by Reuters, other clauses in this separate statement indicate that the bloc would like an agreement on fisheries with Britain to be a priority in the negotiations on expanded trade relations, to be agreed "well before" the end of Britain's status quo after Brexit.

He added that any such agreement would be based on the current access of European Union vessels to the rich British fishing waters, which London wants to control firmly.

It also highlights the European Union's demands that Britain should not reduce labor, environmental or labor standards. He stressed the need to preserve the rights of expatriates, as well as the Paris agreement on the climate.

European diplomats have expressed hope that an agreement will be reached Friday night, but fears that Sanchez still wants to debate at the highest level on Sunday to demonstrate his determination at home before the December regional elections.

"It will only be done by the leaders," said a diplomat.

The Brexit agreement deals with the Financial Regulation, the rights of citizens and the Irish border, as well as the definition of a project for future trade and security relations.