Spain Threatens 'Congestion Tax' On Gibraltar

By ExpatBriefing.com Editorial 23 August, 2013

Spain has threatened to impose a "congestion charge" on traffic crossing the Gibraltar border after the European Commission ruled that a frontier tax would be illegal.

The move is in response to Britain's rejection of Spain's invitation to one-on-one talks over the British Overseas Territory's sovereignty.

Although Spain's plan to levy a EUR50 frontier fee would contravene European Union law, sources from Spain's Foreign Ministry informed local media that “a possible tax on traffic passing through the congested area of La Linea would certainly conform to EU norms."

Spain's foreign minister, Jose Manuel Garcia-Margallo, has said that negotiations with Britain regarding Gibraltar's sovereignty "have been on hold for too long." A spokesman for British prime minister David Cameron said that Britain would be willing to enter talks to address Spain's concerns about Gibraltar's fishing practices, but would not discuss the enclave's sovereignty.

This latest diplomatic spat between Spain and Britain arose when Spain alleged that Gibraltar's construction of an artificial reef is hurting Spanish fishermen.

Tags: Tax | European Commission | Gibraltar | Law | Spain | Construction | Expats | Europe |

 





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