Regulation
Regulation
the fall in the exchange rate and the higher cost of renting property. While the Gibraltar border faces less disruption than the Irish border, it is these soft issues that remain a concern for gambling operators. We need to address these in order to make working in Gibraltar easier.
One thing the audience remained concerned about was what if the border was open in name only? After all, if the queues are such that it takes hours to cross the border, that’ s as good as it being closed for daily commuters. The panel pointed to the EU directives that address outcomes rather than policy – you can have many checks, but the requirement is to have a free-flowing border. The EU’ s flexible border capacity, Frontex, could be deployed if necessary to support that flow. As Peter Isola put it:“ I think there are practical solutions as well as EU directives that are keeping the frontier flowing.”
Access to markets One area where there was much less concern than in 2017 was regarding access to the UK market. Reassurances from the British government seem to have definitively settled this issue in the minds of our panel.
But concern about access to the EU market increased significantly and this was the biggest concern for 35 % of the audience. What can firms do? Mark Essex observed that it is no coincidence that the two sectors in the UK most prepared for Brexit are those whose regulators have been most demanding: financial services and pharmaceuticals. How are Gibraltar’ s regulators approaching the issue?
The panel thought Gibraltar had different challenges to the UK. For example, relatively few insurance companies are relying on‘ passporting’ services from Gibraltar to the EU. Given the impact is less than for the UK, our regulator has more sympathy with businesses waiting for more information and is deliberately not being prescriptive about embarking on expensive contingency plans just now.
But for gaming firms the analysis is different. Jon Tricker thought that concern over market access could prompt at least one‘ no regrets’ action that e-gaming firms could take despite the uncertainty.“ If an operator does not already have an EU licence outside Gibraltar, a good action is to obtain a licence in a jurisdiction such as Malta or Ireland as a backstop position,” he said. That is something that can sensibly be done before the transition period is up, or before the deal is finalised.
Looking on the bright side Although an overwhelming 96 % of voters in Gibraltar wouldn’ t have started on the Brexit journey, is it possible that Brexit provides any upside opportunities? Susan Breen reflected on the recent Commonwealth leaders’ conference and observed that, as the world’ s trading blocs were in flux, perhaps this provided an opportunity to improve and cement some of those Commonwealth relationships. Her advice was clear.“ The only way to deal with something of this nature is to have a sense of creativity,” she said.
Brexit influences the future on both sides of the Channel Brexit is often seen as an issue that affects the UK. Yet if Britain ever had an influence on the other 27 EU members, then surely the country’ s absence will also change the trajectory of the remaining 27? Where is Europe going to go now?
“ I think there are practical solutions as well as EU directives
that are keeping the frontier flowing.”
Peter Isola
Our panel expressed some concerns that the EU could become more unwieldy to deal with and force Gibraltarian businesses to look further afield to other trading relationships. We also speculated on the potential for a reinvented EU which allowed for greater variations between countries than the current one-size-fits-all arrangement. For Gibraltar, the relationship with Spain remains crucial. However, the panel expressed hope that Brexit could encourage concessions to be made on both sides which would improve the lives of both populations.
While it is tempting to focus on the immediate political picture, our panel thought it was also important to keep one eye firmly on what happens after March 2019 and( we hoped) transition. It will be a mistake of historic proportions if we, as a society, focus all our efforts on short-term mitigation and miss the opportunities to use Brexit to improve the lives of people living in Gibraltar.
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