Europe heads off Gibraltar spat to save Brexit summit

European leaders resolved a last-minute dispute over the future of Gibraltar on Saturday, clearing the way for a summit to approve the Brexit deal.

Spain's Prime Minister Pedro Sanchez withdrew a threat to boycott Sunday's European Council just hours before Britain's Theresa May was due in Brussels.

The British premier plans to meet EU leaders Jean-Claude Juncker and Donald Tusk, even though diplomats say the agreement is ready for EU leaders to approve.

Ahead of her arrival, diplomats had scrambled for an unexpected intense final round of discussion, after Spain insisted on keeping a veto over future changes to EU ties with Gibraltar.

Then Britain issued a statement saying it would continue bilateral talks with Spain after Brexit on March 29 -- and Sanchez relented.

"I have just announced to the King that Spain has reached an agreement on Gibraltar," he told a news conference.

"The European Council will therefore be held tomorrow. Europe and the United Kingdom have accepted Spain's demands. Spain has lifted the veto and will vote in favour of Brexit."
"I will recommend that on Sunday we approve the outcome of the Brexit negotiations," Tusk said, saying the deal on the table reduces "the risks and losses resulting from the United Kingdom's withdrawal."
"And although no-one will have reasons to be happy on that day, there is one thing I would like to stress: at this critical time, the EU27 has passed the test of unity and solidarity."
This, Tusk said, will act as a roadmap for negotiations after Brexit day on March 29 to "build the best possible relationship with the UK after Brexit, as friends and partners."