GIBRALTAR, Dec 6 ― Voters in Gibraltar will throw out their Social Democrat leaders after 15 years in an election on Thursday despite the thriving financial-services driven economy in the British overseas territory.
Polls show that Socialist Fabian Picardo, 39, will win with a 9 per centage point lead over 55-year-old Social Democrat Peter Caruana, who has been chief minister since 1996, but has worn out supporters with his domineering style.
But voters are not turning to the left, rather they are opting for a different style of leadership as the two candidates, both lawyers, offer similar visions for Gibraltar, a tiny peninsula near Spain’s southern tip called the Rock.
Picardo has campaigned on bringing a younger, more open style to the government after labeling Caruana as “autocratic”, while Caruana has focused on his record of presiding over an economic boom and easier relations with Spain.
If he wins, Picardo is expected to maintain informal contacts with Spain’s new conservative leader. The People’s Party’s Mariano Rajoy takes office in mid-December.
Some fear that Rajoy’s PP will take a tougher line on Gibraltar, trying to pressure Britain into talks on sovereignty for its 30,000 people, which Picardo is expected to resist.
Spain has disputed Britain’s claim to the territory for more than three centuries, but since 2004, Gibraltar, Spain and the United Kingdom agreed to shelve discussion of sovereignty in exchange for increased cooperation.
Economy booming
Under Caruana the economy, based on financial services, gaming, tourism and low-tax tobacco and luxury goods, has grown. The government has a budget surplus and pension payments are rising along with investment. Unemployment is only 2 per cent and most of the 8,000 jobs created over the past 15 years have been taken up by Spanish cross-border workers.
With wages up and taxes down, Picardo has criticised Caruana for building a £73-million (RM357.7 million) air terminal, arguing that public health projects should take priority.
Despite Spanish allegations of tax dodging in the territory, Gibraltar has over the past decade found a policy of compliance with European Union regulation has boosted the financial centre rather than making it non-competitive as once feared.
The move paid off especially well with offshore gaming licences that have been strictly limited to blue chip firms.
Caruana has regularly invited inspections by international bodies and moved swiftly to sign up to a series of Tax Information Exchange Agreements (TIEAS) including with the United States to try to get off tax haven blacklists.
However such an agreement with Spain was the subject of now suspended talks with Madrid and London. ― Reuters
