The EU’s Draft Guidelines in response to the UK’s Article 50 letter include the paragraph:
“After the United Kingdom leaves the Union, no agreement between the EU and the United Kingdom may apply to the territory of Gibraltar without the agreement between the Kingdom of Spain and the United Kingdom.”

The meaning needs a little thought but I take it to mean that any agreement made for the UK will not apply to Gibralter unless both the UK and Spain agree to it. This has been interpreted by many, especially the Brexit press, as a threat by Spain to Gibralter’s status as an overseas territory of the UK. So what to do?
Michael Howard has, unfortunately, taken it upon himself to rattle Theresa May’s sabre. Speaking to the BBC he said that Thatcher “sent a taskforce halfway across the world to protect another small group of British people against another Spanish-speaking country. And I’m absolutely clear that (May) will show the same resolve in relation to Gibraltar.”
So is this Howard going off-script, or is he Number 10’s messenger? If the latter this is indeed an unexpected turn for the already fraught Brexit process. Not only are we seeking to do untold harm to our own country, we’re now talking about going to war with one of our allies. How the **** did we ever get here? Was this in the referendum back in June?
Aside from Howard’s outburts, May has made much of ‘defending‘ the sovereignty (that word again) of Gibralter and of stopping the nasty Spanish from getting their hands on ‘our’ rock. Back in 2002 the residents of Gibralter had their own referendum on whether Britian should share its sovereignty with Spain. 98.5% they said ‘no’. Last year they took part in that other referendum. And 92% voted to stay in the EU. So it’s really quite clear; they want to stay part of the UK and they want to stay in the EU. The two are totally compatible and work in the interests of the residents and, I imagine, the surrounding parts of Spain.
So how to avoid this potentially very nasty spat with the Spannish and protect Gibralter? It’s simple. Do what the Gibraltarians want: stay in the EU. Job done.