Brexit: EU rules Gibraltar is 'colony of British crown' whose sovereignty is disputed by Spain

Government brands provocative statement 'completely innapropriate' as bloc escalates row over British Overseas Territory

The EU has provocatively described Gibraltar as a "colony of the British crown" whose sovereignty is disputed by Spain.

In a move branded "completely inappropriate" by the UK government, a proposed EU regulation granting Britons visa-free access to the bloc in the case of a no-deal Brexit made a distinction beween those living in Britain and those who are citizens of the British Overseas Territory.

The row highlights strains over the territory as Britain leaves the bloc and EU states swing its policies behind Spain, which British officials believe Madrid is seeking to exploit to ramp up its claim to "The Rock".

A UK government spokesperson said: "The EU’s provisions for visa-free travel into and out of the Schengen area cover Gibraltar, and mean that in any scenario, British Nationals from Gibraltar will be able to travel for short stays in and out of Spain and other countries in the Schengen area.

"Gibraltar is not a colony and it is completely inappropriate to describe in this way.

“Gibraltar is a full part of the UK family and has a mature and modern constitutional relationship with the UK. This will not change due to our exit from the EU. All parties should respect the people of Gibraltar’s democratic wish to be British."

Diplomats said the British ambassador to the EU raised London's objections about Gibraltar's designation in a meeting of EU envoys.

"Gibraltar is a colony of the British Crown,” the text said, according to the Financial Times. “There is a controversy between Spain and the UK concerning the sovereignty over Gibraltar, a territory for which a solution has to be reached in light of the relevant resolutions and decisions of the General Assembly of the United Nations.”

It comes as Britain continues to hurtle towards its 29 March exit date from the EU without any agreement in Parliament over Theresa May's withdrawal deal.

With the prospect of a no-deal Brexit looming, many lawmakers are calling for an extension of Article 50, which would give the prime minister more time to negotiate a deal acceptable to MPs. 

A senior EU diplomat told the newspaper: “The Spanish are gearing up for a Gibraltar fight when there is an extension request. It could be dangerous.”

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The row comes just weeks after a Spanish warship sailed past the territory while apparently playing the Spanish national anthem over loudspeakers.

The Spanish government claims the Iberian territory should be returned to Spain, a policy adopted during the Franco era. Polls and referenda results however show Gibraltans overwhelmingly wants to remain part of the UK.

Last month, defence secretary Gavin Williamson said Gibraltar would "always be under the Union flag”.