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Gibraltar has avoided the damaging prospect of a hard border with the EU after the UK and Spain struck a preliminary deal over the status of the tiny British territory, hours before the end of the Brexit transition period.
It means Gibraltar, off Spain’s southern tip, will now join Europe’s Schengen zone, allowing travel checks to be waived.
“We can look forward with expectation and hope," said Gibraltar Chief Minister Fabian Picardo.
"We believe we may now be able to reset our relationship with Spain and cast it in a more positive light going forward."
Spain’s Foreign Minister Arancha Gonzalez Laya said it meant that residents of Gibraltar could “breathe a sigh of relief”.