Spanish King Felipe VI called for a deal on the status of Gibraltar that would be “acceptable to all” on Wednesday, raising a thorny dispute on the first day of his state visit to Britain. “I am confident that through the necessary dialogue and effort our two governments will be able to work ... towards arrangements that are acceptable to all involved,” Felipe told the British parliament.

Referring to the history of diplomatic relations between Britain and Spain, he said: “I am certain that this resolve to overcome our differences will be even greater in the case of Gibraltar.” With a population of just over 32,000, Gibraltar has been a British overseas territory since 1713 but Spain has long laid claim to the rocky outcrop.

Unlike Britain, Gibraltar voted overwhelmingly to stay in the EU in last year’s referendum, and it depends on an open border with Spain for its workforce and trade.

But Spain wants shared sovereignty and the EU has promised Spain a veto over the extension to Gibraltar of any future trade deal between Britain and the bloc, sparking a storm of outrage in London.

The king’s speech was overwhelmingly conciliatory, speaking about shared history between the two countries as well as joint efforts against terrorism after four attacks in Britain this year.

He said Brexit “saddens” Spain but that it fully respected the result of last year’s vote.

Felipe spoke about the hundreds of thousands of Spaniards living in Britain and Britons living in Spain, whose future hangs in the balance as Britain negotiates its withdrawal from the EU.

There are an estimated 300,000 British citizens living in Spain — the majority of them retirees — and around 116,000 Spaniards living in Britain.

The Spanish royals were greeted on Wednesday by Queen Elizabeth II — a distant cousin of Felipe — at an elaborate ceremony in central London.

Published in Dawn, July 13th, 2017