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LA LINEA’S mayor has expressed his ‘healthy envy’ of how the UK treats Gibraltar, contrasting it sharply with Spain’s handling of his border town’s challenges.
Juan Franco is angry that Spain’s finance ministry has refused to assist the struggling border city, which depends on the Rock for its economic well-being, despite the uncertainty caused by the deadlocked talks regarding a post Brexit.
He made this comparison after Minister Maria Jesus Montero stated that any special measure for La Linea must wait until there is a Brexit deal with Gibraltar.
“We see how, unfortunately, our future as a city is once again put below state interests, ignoring the needs of this territory – the only one really affected by what happens in the future [with the Gibraltar deal]Franco announced on Wednesday.
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The idea of a tax regime similar to Ceuta in Campo de Gibraltar to help boost La Linea’s economic growth is being discussed. This would offset the Rock’s low-tax advantage against its Spanish neighbours.
The mayor branded Montero’s intransigence on considering these ideas as ‘unacceptable’, and revealed that no one had previously mentioned that support for La Linea would depend on securing a Gibraltar deal.
Franco noted that the Brexit vote took place in 2016 and nine years later, there has still been no concrete plan for his town.
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Montero responded that it is ‘fundamentally in the interests of the government to the eliminate of the fence [border],’ and added that it has been ‘working for a long time on the fiscal part, because the fiscal status in Gibraltar has to be compatible with this opening so that nearby municipalities are not hurt by having a more advantageous tax system in one place than another.”
“Clearly, we are using common sense because it’s not just a case of moving the fence to one side and causing the neighbouring municipality the problem. It’s a situation that is more complex.”
The local leader called on both the central and the regional governments to support La Linea in its efforts to develop its economy and reduce its dependence on the Rock.
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Franco challenged the minister to visit La Linea and explain directly to residents why the government ‘won’t implement any measures until an agreement is reached.’
He added that “the central government is not interested in solving the problems of the city because of the lack of attention, the inaction and the absence of response from the state.”
La Linea, the Spanish town most affected cross-border issues, is caught in the middle of the controversy as Gibraltar’s post Brexit relationship with Spain and EU continues to be negotiated.
As many as 15,000 workers cross the border into Gibraltar each day, the majority of whom live in the town of 60,000 – around half of the entire working population.
A hard border may be implemented if Gibraltar fails to come to an agreement. This could lead to massive queues and hardships for employers, as well as workers.
