1. Introduction
A. History And Background
For over 300 years, Gibraltar has been a self-governing British
Overseas Territory. Having been occupied by the Spanish and Moorish
empires in turn, in 1704 Gibraltar became a British Crown colony,
and ever since has been strategically important in the defence of
Britain and her allies. Gibraltar's imposing presence and location
on the turbulent straits that lie between the Atlantic ocean and
the Mediterranean sea, separating Europe from the continent of
Africa, ensured its historic role in shipping, international trade
and communications from the earliest days. Today, it is also a
finance centre, a principal centre for insurance and online gaming,
and a tourist destination.
Gibraltar has internal self-government, while the UK oversees
defence, internal security and external affairs. Gibraltar, a
member of the European Union (EU) since 1973, complies with EU law,
incorporating EU directives into domestic legislation, including
those governing companies, banking, insurance, investment business
and direct taxation. Gibraltar is excluded from the Common
Agricultural Policy and Common Customs Tariff. It levies certain
import duties, but no value added tax.
On 28 December 2006, a new constitution came into force that
incorporates a constitutional relationship with the UK (not based
on colonisation).
The currency is the pound sterling (GBP), with the Currency
Notes Act 1934 conferring on the government of Gibraltar the
right to print its own notes, and the obligation to back and
exchange each printed note with sterling reserves at a rate of one
pound to one pound sterling.
B. Legal System
English common law and equity is applied in Gibraltar. It has
its own Parliament that passes statute law in the form of Acts,
many of which are based on English statutes. Several English
statutes have been incorporated directly into Gibraltar law by the
English Law (Application) Act.
The court system follows that of the UK. The Court of First
Instance deals with small civil cases. The Magistrates' Court deals
with minor criminal matters, licensing and road traffic offences.
The Supreme Court Higher deals with higher-value civil cases and
more serious criminal matters. Appeals are made to the Gibraltar
Court of Appeal. In certain cases, there is a further right of
appeal to the Privy Council in the UK.