Brexit: Spain, UK reach agreement over Gibraltar

Spain reached an agreement with the United Kingdom on Saturday over the status of Gibraltar.

CNN quoted Spanish Prime Minister Pedro Sanchez saying, "I have just told the head of state, the King, that Spain has reached an agreement over Gibraltar."

He further underlined that the agreement excludes the territory from the general negotiation between the EU and UK and "will allow Spain to negotiate directly with the UK over Gibraltar."

"Europe and the UK have accepted the Spanish demands, and as a result, Spain lifts its veto and will vote tomorrow in favour of Brexit," he said in a televised statement. "The question of Gibraltar is of capital importance for Spain," CNN reported.

The British overseas territory of Gibraltar, a rocky projection located at the southern tip of the Iberian Peninsula, which voted overwhelmingly to remain in the EU. This territory is a subject of territorial claims by Spain, which further threatened a clear passage of the Brexit on Sunday.

"Throughout our history we've stuck with Britain," said Fabian Picardo, the Chief Minister of Gibraltar.

On November 21, Theresa May's Brexit deal suffered a setback after Spain threatened to veto her draft divorce agreement over the handling of Gibraltar.

Spain had objected to part of the deal that covers future trade and security relations between the UK and the EU, insisting that arrangements related to Gibraltar should be discussed separately.